New Zealand courier giant Freightways is shelling out $160 million to buy Allied Express Transport, Australia’s largest independently-owned courier and express freight company.
Freightways, a publicly-listed company across the ditch, made the announcement this week after posting a $70.2 million profit for the last financial year.
The deal is expected to be finalised on or after September 30, 2022, according to a media statement from Freightways.
Allied Express has 700 contractors and 450 staff, and boasts a national footprint with leased depots in all major Australian cities.
“This transaction gives us a successful model for enhancing our offering on both sides of the Tasman, leveraging Freightways’ core capabilities in express pick up, processing and delivery while creating a niche in oversized freight at the same time,” said Freightways CEO Mark Troughear.
Allied Express has the ability to deliver 98 per cent of its volume within its own infrastructure, alongside a network of agents capable of servicing smaller towns and rural areas allowing an opportunity to enter the Australian express package market at scale, added Freightways.
“Allied Express has established a strong and highly competitive position in the Australian market over 40 years in specialised logistics,” said Troughear.
“Its ability to handle larger items sets it apart from others with a service that is highly desired by both SMEs and large corporates and has benefitted from the recent acceleration of eCommerce.”
The McDowell family (the shareholders of Allied Express) will become substantial shareholders in the enlarged Freightways group (with an approximately 6 per cent shareholding in Freightways on completion of the transaction) and will continue to work in the business to support growth plans and ensure continuity of personnel for all key stakeholders.
“We look forward to welcoming the Allied Express team to the Freightways family and leveraging each other’s experience and know-how” Troughear concluded.