E-commerce logistics provider, Singapore Post (SingPost), has entered a billion-dollar sale and purchase agreement.
Pacific Equity Partners (PEP), headquartered in Sydney, Australia, will reportedly acquire Australian integrated logistics operation, Freight Management Holdings (FMH), at an enterprise value of $1.02 billion AUD (approx. more than €617 million).
“The Board believes this divestment is the best option for shareholders by crystallising the unrealised value of the business and bringing forward unlocking value for shareholders,” said SingPost Chairman, Simon Israel.
Equity firm, PEP, has made more than 200 acquisitions and engaged close to $50 billon AUD (approx. €30.9 billion) in transactions including both acquisitions and exits since 1998.
“We are thrilled to welcome FMH Group to our portfolio,” said PEP Managing Director, David Brown said.
“FMH Group has a stellar track record of growth, a passionate team and a clear and compelling trajectory. We look forward to supporting them to build on their success and facilitate further opportunities.”
FMG Group is a diversified logistics holding company with divisions across 4PL, warehousing, transportation and technology. It comprises efm Logistics, Flip, Border Express, BagTrans, Spectrum Logistics, CouriersPlease and Logistics Holdings Australia (GKR Transport, Niche Logistics and Formby Logistics).
The proposed divestment is subject to regulatory approvals such as approvals from the Foreign Investment Review Board of Australia and SingPost obtaining the requisite approval from shareholders in an extraordinary general meeting of SingPost to be convened.
SingPost – based in Singapore – is an e-commerce logistics provider with a portfolio that includes national and international postal services, warehousing, fulfilment, international freight forwarding and last mile delivery. The company has more than 4,900 employees serves more than 220 global destinations.
Earlier this year, FMH Group merged with a parcel delivery firm, Together.