LGI Logistics Group International GmbH
“Thanks to acquisition financing the course has been set for international growth.”
As a full service logistics provider LGI's focus is on the automotive, electronics, industrial and health care sectors. Therefore, acquiring ITG GmbH, which operates for well-known brands from the fashion and lifestyle sector, was an ideal supplement to the previous LGI portfolio of services.
In order to achieve a perfect merger, the acquisition financing also has to go smoothly. Because during a merger, ideally not only the companies affected, but also their customers should profit from even more efficiency and service from one source.
In corporate-to-corporate acquisition financing by Commerzbank, initially the individual requirements of LGI had to be taken into account and the new financing integrated into the existing financing concept.
The existing receivables of the taken-over ITG were brought into the expanded asset backed securities programme of the purchasing group. This made it possible to repay a large part of the acquisition financing after a short period of time.
Due to the quick repayment, LGI profited from a lower level of debt and a significant saving in interest. In addition, the company hedged itself against interest rate fluctuations over the entire term of the acquisition financing. Thus the logistics service provider put its takeover project on a reliable costing basis right at the beginning.