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Silk Logistics acquires Perth company

Silk Logistics Holdings Limited has entered into a binding agreement to acquire the Fremantle Freight & Storage Group through the acquisition of head company Brightflow Enterprises (FFS) in a deal worth over $23.6 million.

The acquisition is subject to conditions including final debt facility approval.

Established in 2000, FFS operates across four sites in metropolitan Perth and provides wharf cartage, warehousing, quarantine, fumigation and other complementary port-related services.

Silk Logistics said the acquisition adds immediate scale to Silk’s WA footprint.

The acquisition price consists of $23.6 million payable upfront, with a further $7.8 million payable contingent on achieving agreed financial milestones for the period ending July 31, 2023.

FFS currently generates annual revenue in excess of $29 million as well as strong positive earnings and operating cashflow.

Silk’s CEO Brendan Boyd said, “FFS is a strategically important acquisition and establishes Silk’s Port Logistics capabilities in Perth. This will allow us to extend our elevated customer service offering nationally.

“FFS is an attractive opportunity, the businesses operating philosophy is highly aligned with Silk’s offering and will deliver operational efficiencies as well as further revenue growth.

“Silk also gains an exceptional team at FFS, who are the key to their success and will continue to drive significant value for FFS and the broader Silk business.”

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