Adani Logistics set to acquire agri-logistics arm from AEL

New Delhi: Adani Logistics, a subsidiary of Adani Ports and SEZ, Saturday said it will acquire Adani Agri Logistics from Adani Enterprises in an all cash deal, which is expected to be completed by March.

"Adani Agri Logistics (AALL) is a subsidiary of Adani Enterprises (AEL) and the transaction is proposed at an enterprise value of Rs 1,662 crore," a statement said.

Post the acquisition, the combined business EBITDA (earnings before interest, tax, depreciation and amortisation) will immediately double to Rs 200 crore, it added.

Adani Agri Logistics will add 28 locations and 7 trains to Adani Logistics network.

"AALL targets to double infrastructure capacity in the next three years and tap the new 12.5 MMT infrastructure market as well as opportunities such as conventional storage conversion, among others," the statement said.

The combined business would also benefit from leveraging significant opportunity for handling multiple commodities and transportation.

"This acquisition of AALL brings us one step closer towards our vision to be the leader in providing integrated logistics services in India and focus on developing hinterland logistics.

"It enables us to expand our total addressable market, enhance our network and create a value chain to handle all types of cargo in India," Karan Adani, Chief Executive Officer and Whole Time Director of Adani Ports and Special Economic Zone (APSEZ) said.

APSEZ, a part of globally-diversified Adani Group, is the largest port developer and operator in India.