Singapore, 1 November 2023 – Freight Management Holdings Pty Ltd (“FMH”), a subsidiary of Singapore Post Limited (“SingPost” and “Group”), has entered into a conditional sale and purchase agreement with the shareholders of Border Express, the 6th largest pallet and parcel distribution operator in Australia for a maximum purchase consideration of A$210 million (approximately S$183 million).
Border Express has presence across every state and territory in Australia with comprehensive freight connectivity, warehouses and regional centres, 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. This transaction aligns with SingPost’s strategic ambition to expand its logistics network and foster synergy within its Australian operations to deliver enhanced value to its customers and partners. 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$120 billion1 . With the acquisition of Border Express, the revenues of the enlarged FMH Group are expected to exceed S$1 billion. The expansion would further enhance the FMH Group as a pan-Australia national logistics player in the country’s integrated logistics landscape.
Vincent Phang, Group Chief Executive Officer, 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.”
Said Simon Slagter, Group Chief Executive Officer, FMH Group, “Border Express is a highlyregarded transportation provider throughout Australia. 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.”
The transaction is subject to relevant statutory approvals and other closing conditions.
Source: Singapore Post