Dubai's Abraaj invests in Latin American logistics firm
Dubai-based Abraaj Group has announced the acquisition of a majority stake in URBANO Express, a courier and light logistics solutions company in Latin America with operations in Peru, Ecuador and El Salvador.
URBANO is the market leader for document delivery services in the three countries where it operates, with a distribution network that reaches approximately 85% of the population.
The courier and light logistics sector in Latin America is experiencing rising demand from increased banking penetration, growing demand for telecom services and expanding e-commerce, among other factors, Abraaj said in a statement.
The statement added that Abraaj and URBANO’s management team will focus on enhancing the company’s existing light logistics offerings while entering into new and complementary business lines that can further augment growth, including call centers, customs clearing, shop and ship, and fleet management solutions.
Miguel Olea, partner and regional head of Latin America at Abraaj, said: “We believe this is an opportune time to invest in the courier and light logistics sector in Latin America, which is enjoying high levels of growth as a result of strong consumer and corporate demand.
"Our investment in URBANO represents a partnership with a leading firm and an entrepreneurial management team who share our vision of growth for the business. Abraaj has a successful track record in the logistics sector in Asia, the Middle East and Africa and we look forward to bringing this expertise to bear in our investment in Latin America.”
Abraaj first invested in the logistics sector in 2002 through its acquisition of Aramex in the Middle East, one of the most successful public-to-private transactions in the region.
Abraaj subsequently invested in three other logistics businesses in Asia and Sub-Saharan Africa. Abraaj has invested in the Pacific Alliance countries of Colombia, Mexico and Peru since 2008 across a range of sectors including retail, tourism, technology, food and beverage, and consumer goods.