15 January 2009

US merger for London-based luggage delivery company

London-based First Luggage has completed a merger with its top three rivals in the US to create a new company.

The international door-to-door luggage collection and delivery service now owns 60% of a newly-formed group, which has an annual turnover of $5 million and includes the three US market leaders - Luggage Express, Sports Express and Virtual Bell-Hop.

All three brands will remain in the marketplace.

The group's management says it expects to achieve annual growth of around 25% over the next five years.

It claims that with no stock and no debt, it is well-placed to take advantage of further opportunities for expansion and acquisition.

Since its foundation four years ago, First Luggage has recorded an annual growth rate of around 100%, has handled some 250,000 pieces of luggage and seen the number of items it has dispatched increase by 200% per year.

The company has announced it will cover new routes to Mauritius, Egypt, Russia and South Africa.

Founder and CEO Gideon Kasfiner said: "Despite the downturn, we anticipate strong growth rates for the business over the next few years as airlines increasingly look to charge more for passengers’ luggage and people get exasperated by baggage chaos at airport terminals."

By Bev Fearis