Fashion
Freight Management Holdings or FMH, a subsidiary of Singapore Post, has entered into a conditional sale and purchase agreement with the shareholders of Border Express, for a maximum purchase consideration of A$210 million, or approximately S$183 million.
Border Express is considered the 6th largest national transport and distribution services company in Australia with comprehensive freight connectivity, warehouses and regional centres.
It provides end-to-end interstate logistics services with a network of 16 facilities, a fleet of over 700 vehicles, a team of 1,300 employees, and over 3,000 clients across industries, including large retail and consumer brands.
Upon completion, Border Express will join the transportation companies held under the FMH Group umbrella, which include 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, and more recently, it reached agreement with the remaining minority shareholders of FMH to take its ownership to 100 percent.
The Australian integrated logistics market is estimated at over A$120 billion. With the acquisition of Border Express, revenues of the wider FMH Group are expected to exceed S$1 billion.
“Upon completion, the acquisition will support FMH Group to realise the vision of a new logistics ecosystem where people and physical assets are connected through a ubiquitous technology platform, enabling true supply chain efficiency,” said Simon Slagter, Group Chief Executive Officer at FMH Group,
The transaction is subject to relevant statutory approvals and other closing conditions.
