Wisskirchen Logistik, a private German air cargo company, is in acquisition talks to further strengthen its market positioning within Germany, according to founders Oliver Hellwig and Suleyman Demirci, who are both managing directors.
The company is in talks with a domestic entity active in the air cargo security space with revenue of around EUR 5m, Hellwig said, adding the objective is to acquire the majority of the company and close the deal in two months.
A German company active in the sector of air cargo handling with revenue of EUR 15m is also in discussions with Wisskirchen. Several other smaller firms with revenue between EUR 5m and EUR 10m are under Wisskirchen’s radar, he noted.
A joint venture agreement with an unidentified large player in the air cargo security space is also in the final stages of negotiations.
Taking new investors on board is an option to finance M&A deals but the owners want to maintain a majority stake, Demirci said. The company has received approaches from private equity firms in the past but right now there are no ongoing talks, he added. An exit could be considered once the company has reached revenue of around EUR 100m.
The company aims to reach revenue of EUR 30m within two years from the current EUR 15m, Hellwig said. It anticipates EUR 100m revenue in five to eight years, he pointed out. Organic growth will account on the total growth for 10% to 15% a year, the remainder will be generated by acquisitions and JVs.
Wisskirchen works with the tax and accounting firm, MSRG DORNBACH.
Broadening the product/service portfolio and entering new niche markets will be the company’s M&A focus. Buys to expand outside Germany are not planned for the next couple of years, he added.
To date Wisskirchen’s growth has been financed with cash flow and credit lines, Hellwing noted. The company’s house banks are Sparkasse (savings bank) KoelnBonn, Sparkasse Langenfeld and Commerzbank.
Wisskirchen provides services for airports, airlines and cargo logistic companies. The company–which has 400 employees–handles more than 400,000 tonnes of air cargo a year at its locations in Frankfurt, Munich and Cologne. Lufthansa Cargo, Lufthansa Technik and WFS Wolrdwide Flight Service are among its clients, according to the company website.
Wisskirchen’s competitors include Adecco and subsidiaries of airport companies, Hellwig said.
by Laura Larghi