Melbourne, 01 November 2023 – Freight Management Holdings Pty Ltd (“FMH”), a subsidiary of Singapore Post Limited (“SingPost” and “Group”), has entered into a conditional sale and purchase agreement with the shareholders of Border Express, the 6th largest national transport and distribution services company in Australia.
Border Express has presence across every state and territory in Australia with comprehensive freight connectivity, warehouses and regional centres, providing end-to-end interstate logistics services. With a network of 16 facilities, a fleet of over 700 vehicles, and a dedicated team of 1,300 employees, Border Express has established itself as a reliable partner to over 3,000 clients from across industries, including large retail and consumer brands.
Upon completion, Border Express will join the transportation companies held under the FMH Group umbrella, GKR Transport, Niche Logistics, BagTrans, Formby Logistics and Spectrum Transport.
Over the past three years, SingPost has expanded its operations in Australia with the FMH Group and CouriersPlease. This transaction aligns with SingPost’s strategic ambition to expand its logistics network and foster synergy within its Australian operations to deliver enhanced value to its customers and partners. In addition to this transaction, SingPost has reached agreement with the remaining minority shareholders of FMH to take its ownership to 100%.
The Australian integrated logistics market is estimated at over A$120 billion1. With the acquisition of Border Express, the revenues of the enlarged FMH Group are expected to exceed S$1 billion.
Vincent Phang, Group Chief Executive Officer, SingPost Group, said, “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. We look forward to welcoming Border Express to the FMH Group and SingPost Group family.”
Said Simon Slagter, Group Chief Executive Officer, FMH Group, “Border Express is a highly-regarded transportation provider throughout Australia. Upon completion, the acquisition 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.”
Border Express Executive Director Transformation, Mark Luff, said: “We are excited to embark on this new chapter as we enter 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.”
The transaction is subject to relevant statutory approvals and other closing conditions.
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About FMH Group
FMH Group is a diversified logistics holding company with divisions across 4PL and Warehousing, Transportation, and Technology. Its vision is to create a new logistics ecosystem, where people and physical assets are connected through a ubiquitous technology platform, enabling true supply chain efficiency. FMH Group is 88% owned by Singapore Post. www.fmhgroup.com.au
About Singapore Post Limited (SingPost)
Singapore Post (SingPost) is a leading postal and eCommerce logistics provider in Asia Pacific. The portfolio of businesses spans from national and international postal services to warehousing and fulfilment, international freight forwarding and last mile delivery, serving customers in more than 220 global destinations. Headquartered in Singapore, SingPost has over 4,900 employees, with offices in 13 markets worldwide. Since its inception in 1858, the Group has evolved and innovated to bring about best-in-class integrated logistics solutions and services, making every delivery count for people and planet. www.singpost.com
About Border Express
Border Express is a national transport and distribution services company with a strong capital city and regional network. Its vision is to be recognised by our customers as the industry leader in service, delivery and value. To achieve this it leverages off its greatest assets – people, process, innovation and technology, in an environment that’s focused on safety and sustainability. Find out more at www.borderexpress.com.au
For media enquiries:
Julia Loughlin Founder and Principal Consultant Echomakers, on behalf of FMH Group m: +61 422 281 915 | Sophia Ong Group Communications and Marketing SingPost m: +65 9839 1855 |
For media enquiries:
Julia Loughlin Founder and Principal Consultant Echomakers, on behalf of FMH Group m: +61 422 281 915 | Sophia Ong Group Communications and Marketing SingPost m: +65 9839 1855 |
- PEP investment to enhance FMH Group’s technology platform
- Will support strategic acquisition opportunities
- Strengthens FMH Group position as industry leader to unlock greater value for customers
Melbourne, Australia 02 December 2024 – Singapore Post Limited (SingPost) today announced that it has entered into a sale and purchase agreement with Pacific Equity Partners (PEP) for the sale of its Australia business, Freight Management Holdings Pty Ltd (FMH).
With PEP as its new owner, FMH Group will be well-supported to build on its strong foundation, accelerate its growth strategy, and continue delivering outstanding value and market leading service to its customers. Customers and carrier partners can expect the same high level of service and innovation as the company enters this new phase of growth.
Simon Slagter, CEO of FMH Group said: “This is 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. 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.”
Pacific Equity Partners Managing Director, David Brown said: “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. We look forward to supporting them to build on their success and facilitate further opportunities.”
Singapore Post Chairman, Simon Israel, said: “Since our initial investment in FMH Group in 2020, we have witnessed the group achieve extraordinary growth. 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.”
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.
For the full details, please refer to the SGX Announcement dated 2 December 2024 on “Proposed Sale of SingPost Australia Investments Pty. Ltd.”
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About FMH Group
FMH Group is a diversified logistics holding company with divisions across 4PL, warehousing, transportation and technology. Its vision is to create a new logistics ecosystem, where people and physical assets are connected through a ubiquitous technology platform, enabling true supply chain efficiency. FMH Group comprises: Australia’s leading 4PL, efm Logistics; logistics technology company, Flip; transportation providers, Border Express, BagTrans, Spectrum Logistics, CouriersPlease and Logistics Holdings Australia, under which is GKR Transport, Niche Logistics and Formby Logistics. www.fmhgroup.com.au
About Pacific Equity Partners (PEP)
PEP is one of Australasia’s oldest, largest and most active private equity firms, currently with A$12 billion AUM across various investment strategies. Since 1998, PEP has made more than 200 acquisitions, has engaged close to A$50 billion of transactions, including both acquisitions and exits, and has delivered a 28% average Net IRR p.a. across the closed end funds. PEP has been the recipient of various industry awards over the past 26 years, including most recently the 2024 Firm of the Year Award from the Australian Investment Council (AIC).
www.pep.com.au
About Singapore Post Limited (SingPost)
Singapore Post Limited (SingPost) is a leading postal and eCommerce logistics provider in Asia Pacific. The portfolio of businesses spans from national and international postal services to warehousing and fulfillment, international freight forwarding and last mile delivery, serving customers in more than 220 global destinations. Headquartered in Singapore, SingPost has over 4,900 employees, with offices in 13 markets worldwide. Since its inception in 1858, the Group has evolved and innovated to bring about best- in-class integrated logistics solutions and services, making every delivery count for people and planet.
For media enquiries:
FMH Group
Julia Loughlin | 0422 281915 | julia@echomakers.com.au
Singapore Post
Belinda Tan | +6597468446 | belinda.tan@singpost.com
PEP
Geoff Elliott | 0488 051 888 | gelliott@gracosway.com.au
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