Singapore Post has acquired a 38-per cent stake in Freight Management Holdings (FMH), a fourth-party logistics service company based in Victoria, Australia, for A$85 million (US$60.4 million), according to a disclosure.
The purchaser will acquire the aggregate 38-per cent equity interest pursuant to the acquisition through a combination of subscription of new ordinary shares to be issued by FMH and the acquisition of existing ordinary shares from certain existing shareholders of the Australian firm.
Singapore Post said it intends to set up a new holding company in Australia to hold its equity interest in FMH on completion of the acquisition.
FMH has a long-standing business relationship with the SingPost Group, having been a customer of CouriersPlease, a wholly-owned subsidiary of SingPost, for many years.
The principal activity of FMH is the provision of integrated supply chain and distribution solutions to customers in Australia through a 4PL technology platform. FMH provides these services under the trade name of EFM to over 500 businesses across Australia.
FMH has built up a diversified client base across a broad range of industries over the last 20 years. It also has a wide partner carrier base and long-standing relationships with these carriers, with over 150 carriers partnered in the last year.
Damian Degenhardt, an Australian resident, founded the business in 2000 and is currently the majority shareholder and Managing Director of FMH, with over 20 years of industry experience in Australia.
Degenhardt will continue in his existing role post completion of the acquisition.
“The acquisition is in line with the SingPost Group’s strategy to transform into a leading eCommerce logistics solutions provider, focusing on opportunities in the fast-growing Asia-Pacific region,” the company said in a disclosure.
Australia is one of the largest and most developed eCommerce markets in the Asia-Pacific region by gross merchandise value, and the overall Australian CEP market is estimated to be worth A$10 billion today.
COVID-19 has accelerated eCommerce adoption and is pushing retailers to adopt online sales channels more rapidly. Volumes continue to grow, and the CEP market is expected to benefit from these trends. – BusinessNewsAsia.com