Border Express sold for $210 million

Freight Management Holdings Pty Ltd (FMH), a subsidiary of Singapore Post Limited, has entered into a conditional sale and purchase agreement with the shareholders of Border Express, Australia's sixth-largest pallet and parcel distribution operator, for a maximum purchase consideration of $A210 million.

Border Express has a 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 1300 employees, Border Express has established itself as a reliable partner to over 3000 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 $120 billion. With the acquisition of Border Express, the revenues of the enlarged FMH Group are expected to exceed $S1 billion.

Commenting on the acquisition, 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."

Border Express Executive Director Transformation, Mark Luff, commented: "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