Xpediator, the freight management services provider, has announced it is acquiring the contract logistics and business Import Services Limited based at the Port of Southampton for up to £12 million.

The acquisition by Xpediator will add around 40,000 square metres of warehousing to its existing operations. There will also be opportunities to cross sell current group services. It aims to combine existing Southampton facilities with ISL to create long-term cost efficiencies.

The plans by Xpediator are set to grow the company’s earnings in the first year of full ownership. It will also put the firm in a position to benefit in any upturn in international trade should Brexit have such effects. According t the company it aims to develop a further 20 million square metres of warehousing inside the port of Felixstowe.

ISL generated revenues of £21.7m for the year ended 31 December 2017. “We are confident, as part of the Xpediator group, the business will continue to grow, providing a bright future for ISL’s employees, clients and suppliers,” said ISL chief executive John Eynon.