PBB Logistics acquires UIL, UCS
Ontario-based PBB Global Logistics, a customs broker and freight forwarder with operations on the U.S./Canadian border, has entered into an agreement to acquire Unicity Integrated Logistics Inc. (UIL) and Unicity Customs Services Inc. (UCS) for an initial C$42 million ($33 million).
PBB will pay an additional payment of up to C$3 million ($2.4 million) if the acquired companies achieve certain profit targets over the course of the two years following closing.
UCS is a customs broker in Canada; UIL provides strategies and systems designed to minimize supply chain costs to international clients accessing the Canadian market. The two companies have approximately 250 employees in more than 10 locations across North America.
As part of the purchase price, Ken Kotowich, president and chief executive officer of UIL, and Dwight Casson, president of UCS, will receive PBB units valued at about C$15.75 million ($12.7 million) and will start work for PBB. Kotowich and Cassonhave agreed to enter into lock-up agreements pursuant to which the units issued to them are to be held for 12 to 22 months.
The remaining balance of the purchase price, approximately C$26.25 million ($21.2 million), and associated transaction costs are expected to be funded in cash. The transaction is subject to the satisfaction of certain conditions, including the completion of financing and the receipt of all necessary approvals from the Toronto Stock Exchange, as well as other customary conditions. The transaction is expected to finalized in March.