CWT Globelink to acquire 34.24% stake in Fallow

CWT Globelink, an ocean freight forwarder and consolidator of less than container load (LCL) cargo, has entered into a share sale and purchase agreement (SPA) to acquire a 34.24% stake in Fallow International Freight (Fallow) for GBP616,320.

Fallow is a sea freight forwarder specialising in LCL consolidation in the UK and also offers direct service coverage in and out of many ports in the UK.

After completion of the acquisition, Fallow will be renamed as Globelink Fallow Limited, which was a part of Globelink's global agency network for more than 17 years.

The deal will add strategic competencies and business network to both the firms, while Globelink will be able to tap on Fallow's strong local market knowledge and active business relationships with many common agents within its group of agency network to gain a stronger foothold in major ports in the UK.

The Consideration has been determined on a willing-buyer-willing-seller basis, and takes into account the track record of Fallow, its management strength and capabilities, its business network and customer relationships, the results of the financial due diligence and the Company's assessment of the business and prospects of Fallow, including its potential synergy with Globelink's group of companies.

The company said that under the SPA, the consideration is payable as follows: GBP 316,320 in cash upon completion of the acquisition, while GBP300,000 in cash to be paid progressively following the acquisition upon achievement of agreed profit after tax.

The SPA also includes a call and put option for Globelink to exercise to gain a further 16.76% stake in Fallow anytime after three years from the completion date of the Acquisition.