SingPost’s Australian unit acquires Border Express for $183m

The ongoing purchase will propel its revenue to S$1b.

Freight Management Holdings (FMH), a subsidiary of Singapore Post Limited (SingPost), has proceeded into a conditional sale and purchase agreement of Australia-based delivery service provider Border Express for $183m (A$210m).

SingPost has also finalised an agreement with the remaining shareholders of FMH to reach ownership of Border Express to 100%.

With the purchase, revenue of the expanded FHM Group is projected to exceed $1b, increasing its leverage as a major player in Australia’s integrated logistics market.

“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,” Vincent Phang, Group CEO of SingPost Group, said.

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As Australia's sixth largest distribution services company, Border Express has a vast presence in every territory and state with an inclusive freight network, end-to-end regional logistic services, and numerous warehouses and regional centres.

Currently, the distribution service has 16 facilities, a fleet of an estimated 700 vehicles, and a devoted team of 1,300 employees, serving over 3,000 clients of different backgrounds with delivering large retail and consumer brands.

For over three years, SingPost has widened its operations with the FMH Group and CouriersPlease. The acquisition of Border Express ensures of SingPost’s strategy to enhance its logistics network and client synergy within the Australian clientele.

$1 = A$1.14