Border Express to be acquired by Singapore Post for $210M

Border Express will fall under the umbrella of FMH Group.

Freight Management Holdings has entered into a conditional sale and purchase agreement with the shareholders of Border Express for a maximum purchase consideration of $210 million.

As Australia’s sixth largest pallet and parcel distribution operator, Border Express makes for a major addition to the portfolio of companies controlled by FMH Group, a subsidiary of Singapore Post Limited.

Niche Logistics, BagTrans, Formby Logistics, Spectrum Transport and more recently GKR Transport, a roadtrain specialist it purchased in 2021, all fall under the stable of Singapore Post, who is looking to widen its logistics presence in Australia.

Border Express, which maintains operations across every state and territory in Australia, manages a fleet of over 700 vehicles across a network of 16 facilities. Nearly 1,300 staff serve 3,000 clients.

The transaction aligns with Singapore Post’s strategic ambition to foster synergy within its Australian operations to deliver enhanced value to its customers and partners.

In addition to this transaction, Singapore Post has reached agreement with the remaining minority shareholders of FMH to take its ownership to 100 per cent.

With the acquisition of Border Express, the revenues of the enlarged FMH Group are expected to exceed well over $1 billion.

“FMH Group has built a sustainable integrated logistics business in Australia,” said Vincent Phang, Group Chief Executive Officer, Singapore Post Group.

“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.”

Border Express Executive Director Transformation, Mark Luff, said the company was
excited to embark on a new chapter as it entered into a conditional agreement with FMH Group.

“Joining forces with FMH Group will provide us with access to an extensive network, cutting-edge technology and resources that will enable us to serve our customers even better and expand our reach even further,” he said.

The acquisition is subject to relevant statutory approvals and other closing conditions.

Upon completion, it 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,” Simon Slagter, FMH Group CEO said in a prepared statement.

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