$VCEX BoxVn Signs LOI to Close Strategic Acquisition
Press Release | 11/05/2020
— Deal Immediately Increases Capabilities, Enhances Market Share in UK Logistics Industry
— Transaction Could Close in November, Ahead of Busy Holiday Season
— Addition Comes at Critical Time with Commencement of Pandemic-Related Lockdown
— New Acquisition Expected to Be Earnings Accretive in 2021
LONDON, Nov. 05, 2020 (GLOBE NEWSWIRE) -- BoxVn Limited (OTCPINK:VCEX), an emerging leader in the fast-growing Driver and Light Commercial Vehicle (LCV) supply segment of the logistics industry, confirmed that it is in advanced talks to buy Highway Transport Group (Hitra) , a deal valued at approximately $3m in a combination of cash and stock. Subject to due diligence, this transaction signifies another step in the rise of the Driver and Light Commercial Vehicle supply business. The news follows a string of moves that are primed to have a profound impact on the Company’s growth and positioning within the segment for BoxVn.
Highway Transport Group (Hitra) is an emerging logistics business which holds valuable and key service contracts with some of the biggest brands in the UK, including high street and online shopping brands as well as national warehousing distributors. The company has been using BoxVn vehicles for over a year and the relationship has played a significant role in commencing acquisition discussions with BoxVn.
Michael McGovern, Highway Transport Group Managing Director commented, “BoxVn’s service has facilitated our own growth while their client-first focus is something that mirrors ours. We entered into discussions regarding a combination with BoxVn to create a strong industry brand and being part of a larger group is something that will only propel Hitra to another level of growth which would be otherwise unachievable. We are now able to present Hitra as a company with enhanced facilities, improved fleet maneuverability, greater driver recruitment and a stronger financial structure. Together, we can increase market share over competitors who have been in business for decades.”
BoxVn, James Gilzean CEO noted, “We are very excited about the potential combination with Hitra and our companies may be able to conclude a deal within a matter of weeks, ahead of the all-important holiday season. Clearly, this new addition comes at a critical juncture given the latest pandemic-related lockdown. Adding a transport and logistics company to our portfolio will enhance our presence within the sector, and we expect the transaction to be accretive to our earnings.”
In recent months, BoxVn has been preparing to deal with the consequences of another UK-wide lockdown. Earlier this year, the COVID crisis favorably impacted BoxVn given the business generated by our clients who operate predominantly in the logistics’ last mile delivery sector. The British Retail Consortium, recently reported that 61.9% of all non-food retail sales in May this year took place online – which was up 31.4% on the same period 12 months previously. Faced with such a hike in volume, those logistics supply companies are primed once again turn to companies like BoxVn.
About BoxVn Limited
BoxVn Limited started as a small recruitment business and quickly evolved into a driver and Light Commercial Vehicle (LCV) supply business offering services so unique that it has revolutionized flexible vehicle supply, unemployment and the driver recruitment life cycle to provide a dependable and integral service to one of the biggest and fastest growing sectors in the world, Our core business is the supply of Light Commercial Vehicles to logistics businesses on a flexible and medium-term basis, and is designed to serve logistics businesses and drivers first with a non-traditional approach offering a high-level of service at an affordable price point. For more information, please visit www.boxvn.co.uk.
Notice Regarding Forward-Looking Statements
This news release contains "forward-looking statements" as that term is defined in Section 27A of the United States Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Statements in this press release, which are not purely historical, are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, filing patent applications, product development, and business strategy. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with new projects and development stage companies. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that any beliefs, plans, expectations, and intentions contained in this press release are reasonable, there can be no assurance that any such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in BoxVn periodic reports filed from time-to-time with the Securities and Exchange Commission.
Contact Information:
For the Company For Investor Relations
James Gilzean Stan Wunderlich
Managing Director Launchpad IR
jg@boxvn.co.uk swunderlich@cfsg1.com
+44 (0) 203 553 5353 1-800-625-2236
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