NTG's Strategic Acquisition of ITC Logistic GmbH: A Path to Long-Term Shareholder Value

On 13 January 2025, NTG Nordic Transport Group A/S (NTG) announced a significant strategic move, the acquisition of ITC Logistics GmbH (ITC), which is expected to unlock synergies and create a robust platform for future growth. The acquisition, valued at EUR 56.9 million on a cash and debt-free basis, with an additional earn-out payment of up to EUR 3.6 million contingent on achieving certain commercial criteria, is a testament to NTG's commitment to expanding its market position in Germany and Europe.



The acquisition of ITC Logistic GmbH aligns with NTG's strategic goals and market position in Germany and Europe in several ways. Firstly, it allows NTG to expand its scale in the existing network, following the acquisition of SCHMALZ+SCHÖN Holding GmbH ("SSH"). This expansion reinforces NTG's market position in Germany and strengthens its presence across Continental Europe. Secondly, the acquisition is expected to unlock synergies for NTG, estimated at EUR 2.3 million, primarily driven by operational and commercial optimisation as well as cross-selling opportunities. These synergies will contribute to NTG's bottom line and reinforce its market position. Lastly, NTG's German operations, comprising NTG, SSH, and ITC, will reach a notable scale, creating a robust platform for future organic growth and bolt-on acquisitions. This platform will enable NTG to continue expanding its market position in Germany and Europe.

The acquisition of ITC Logistic GmbH is also expected to have a positive impact on NTG's shareholder value in the long term. While the transfer of treasury shares to the seller of ITC Logistic GmbH as payment for 20% of the purchase price has reduced NTG's holding of treasury shares to less than 5% of the total share capital of NTG, this action has several potential long-term benefits. Firstly, the acquisition is expected to unlock synergies that could potentially offset the dilution effect and contribute to increased shareholder value in the long term. Secondly, the acquisition aligns with industry trends and government policies, which could be positively received by the market, as suggested by research on intelligent logistics policies (ILPs). Lastly, the acquisition expands NTG's scale in the German market and creates a robust platform for future organic growth and bolt-on acquisitions, which could lead to increased shareholder value over time as NTG continues to grow and expand its operations.

In conclusion, NTG's acquisition of ITC Logistic GmbH is a strategic move that aligns with the company's goals and market position in Germany and Europe. The acquisition is expected to unlock synergies, create a robust platform for future growth, and have a positive impact on NTG's shareholder value in the long term. As NTG continues to expand its operations and explore new opportunities, investors should keep a close eye on the company's progress and the potential benefits that the acquisition of ITC Logistic GmbH may bring to shareholder value.