UTi acquires South African healthcare firm, reports profits
UTi Worldwide Inc., the fast-growing forwarding and logistics service provider based in Rancho Dominguez, Calif., said a partnership, 74.9-percent owned by UTi and 25.1-percent to be owned by a South African black economic empowerment organization, has completed the acquisition of International Healthcare Distributors (Pty.) Ltd. for $40 million in cash, including a loan of $17 million from UTi to the partnership.
Nasdaq-listed UTi also reported Monday large increases in its profit and revenue for the quarter ended April 30.
Net income for the latest quarter rose 60 percent to $12.8 million, as compared to the corresponding period a year ago
Gross revenues increased 50 percent to $489.6 million from $326.8 million. Net revenues advanced 29 percent to $170.0 million from $131.4 million.
“First quarter results reflect another quarter of solid gains in gross and net revenues across all service categories and geographic regions over the year-ago comparable period,” said Roger I. MacFarlane, chief executive officer of UTi Worldwide.
In the latest quarter, air freight forwarding net revenues increased 26 percent; ocean freight forwarding net revenues advanced 32 percent; customs brokerage net revenues grew 26 percent; and contract logistics net revenues rose 30 percent, when compared with the results of the same quarter of last year.
The Americas region increased its net revenue 20 percent at UTi in the latest quarter, whereas its operations in Europe, Africa and Asia-Pacific expanded faster.