UTi acquiring Israeli firms, forming new merged entity
Rancho Dominguez-based logistics firm UTi Worldwide Inc. Friday announced a deal to acquire controlling interests of Zim freight forwarding subsidiary Newlog Ltd., and certain assets, including goodwill, of Israeli freight forwarder Transclal Trade Ltd.
The two firms operate as UTi’s only air freight and ocean freight forwarding agents in Israel.
The deal will create a consolidated entity under the UTi Israel trade name. The pending transactions, expected to close within 60 to 90 days, are subject to various closing conditions, including the requisite regulatory antitrust approvals.
Under terms of the agreement, Newlog will merge with UTi's wholly owned Israeli operations, UTi Eilat Overseas Ltd.
Financial terms for the Newlog transaction were not disclosed.
The merged UTi/Newlog entity, to be 75 percent owned by UTi and 25 percent owned by Zim, will then acquire 100 percent of the goodwill, trade name and certain related assets and liabilities of Transclal Trade Ltd. for the purchase price of $34 million to 37.5 million cash.
Mordechai Friedman, Transclal’s chief executive officer and majority shareholder, will become CEO of the newly formed entity. Yoram Sebba, Zim’s vice chairman, will join the newly formed entity as chairman, and Shlomo Sharon, Transclal’s current senior vice president, will become vice chairman.