Freight Management Holdings (FMH), a subsidiary of Singapore Post (SingPost), has agreed the purchase of Australian transportation and distribution services provider Border Express, for a maximum purchase price of A$210m (US$135m).
Border Express has presence across every state and territory in Australia with comprehensive freight connectivity, warehouses and regional centers, providing end-to-end interstate logistics services. With a network of 16 facilities, a fleet of over 700 vehicles, and a dedicated team of 1,300 employees, Border Express has established itself as a reliable partner to over 3,000 clients from across industries, including large retail and consumer brands.
Upon completion, Border Express will join the transportation companies held under the FMH Group umbrella, GKR Transport, Niche Logistics, BagTrans, Formby Logistics and Spectrum Transport.
Over the past three years, SingPost has expanded its operations in Australia with the FMH Group and CouriersPlease. In addition to this transaction, SingPost has reached agreement with the remaining minority shareholders of FMH to take its ownership to 100%.
The Australian integrated logistics market is estimated at over A$120bn (US$77bn). With the acquisition of Border Express, the revenues of the enlarged FMH Group are expected to exceed S$1bn (US$730m).
Vincent Phang, group CEO, SingPost Group, said, “FMH Group has built a sustainable integrated logistics business in Australia. This acquisition is immediately accretive to earnings, solidifies FMH as a leading logistics provider, and continues the growth and development of our Australian operations. We look forward to welcoming Border Express to the FMH Group and SingPost Group family.”
Simon Slagter, group CEO, FMH Group, said, “Border Express is a highly-regarded transportation provider throughout Australia. Upon completion, the acquisition will support FMH Group to realize the vision of a new logistics ecosystem where people and physical assets are connected through a ubiquitous technology platform, enabling true supply chain efficiency.”
The transaction is subject to relevant statutory approvals and other closing conditions.