CTI Logistics Limited
(ASX:CLX) say they have bought GMK Logistics, a leading floor covering distributor.
GMK has warehouses in Brisbane, Sydney, Newcastle, Melbourne, Adelaide and Perth and will provide CTI with a national footprint from which to grow its transport and logistics business.
CTI will purchase the shares of Logico Operations Group wich owns GMK Logisitics. Logico CEO Derek Lightfoot has been retained to run GMK from its Sydney headquarters.
CTI will pay $27 million for the company with some of the payments funded by existing facilities. CTI will ask shareholders to vote on a new bank facility to cover around $13.5 million of the purchase price.
CTI Logistics made a net profit of $4.23 million for the first six months of the 2015 financial year.
