Singapore Post Limited today announced that it has entered into a sale and purchase agreement with Pacific Equity Partners (PEP) for the sale of its Australian business, Freight Management Holdings Pty Ltd (FMH).
The Melbourne-based private equity firm PEP welcomed one of the country’s largest vehicle fleets, which includes Border Express and CouriersPlease, to its expanding portfolio.
The bid is reportedly valued at $1.02 billion.
“We are thrilled to welcome FMH Group to our portfolio. FMH Group has a stellar track record of growth, a passionate team and a clear and compelling trajectory,” said Pacific Equity Partners Managing Director, David Brown.
“We look forward to supporting them to build on their success and facilitate further opportunities.”
The news comes less than 12 months after FMH Group acquired Border Express.
Last December PEP acquired a majority stake in Australian electric vehicle charging solutions provider EVSE for $250 million.
The company provides DC fast charging solutions for larger commercial vehicles and fleets, with the commercial offerings including end-to-end solutions that bundle hardware, software and installation services.
In a statement released today Border Express called it a new chapter for the business.
“This new partnership reflects the strength of the Group and its businesses, including ours, and sets the stage for continued growth and success,” the company said.
“We’re optimistic about the potential to further build on our strong foundation and deliver even greater value to our customers and employees.”
Simon Slagter, CEO of FMH Group said it was an exciting milestone for FMH Group.
“We have built a foundation of trust with our customers, achieved significant growth, and led the way in providing excellent logistics services,” he said.
“The investment of Pacific Equity Partners will help us take the next leap forward, empowering us to further enhance our technology platform, turbocharge our business development function and pursue strategic acquisition opportunities, strengthening our position as industry leader and unlocking even greater value for our customers.”
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.
“Since our initial investment in FMH Group in 2020, we have witnessed the group achieve extraordinary growth,” said Singapore Post Chairman, Simon Israel.
“Now, with its strong market position and growth pathway the Board has decided it is time to realise the substantial shareholder value created. The transition of FMH Group ownership to PEP will support its continued upward trajectory.”
Mark Luff, son of founder Max Luff and the last family member to depart Border Express after 36 years, finished up last week.