DP World Australia has announced its plans to acquire Silk Logistics.
With its fleet of prime movers, side-loaders and trailers, Silk Logistics provides port-to-door logistics services, operating from 21 logistics hubs and 25 warehousing sites across five Australian states.
Silk Logistics operates two main business segments:
- Port Logistics: Wharf cartage services between Australia’s major ports.
- Contract Logistics: Warehousing and multimodal distribution solutions to support complex supply chain needs.
DP World Australia operates four container terminals and three container parks – at Brisbane, Sydney, Melbourne and Fremantle – as well as inland distribution centres and warehouses.
DP World Australia, a subsidiary of DP World, has entered into a binding Scheme Implementation Deed for the acquisition of 100 per cent of the issued share capital of Silk Logistics Holdings Limited via a Scheme of Arrangement with a cash offer of A$2.14 per share. The transaction values the equity of Silk Logistics at approximately A$174.5 million.
“DP World’s acquisition of Silk Logistics marks a significant step forward in strengthening our integrated logistics capabilities and expanding our service offerings,” said Sultan Ahmed bin Sulayem, group chairman and CEO, DP World. “This strategic move reinforces our commitment to providing seamless, end-to-end customised solutions for our customers, while delivering sustainable value for all our stakeholders.”
Glen Hilton, CEO and managing director for DP World Asia Pacific added, “DP World Australia is excited about the opportunity to welcome Silk Logistics into our portfolio. This acquisition aligns with our strategy to deliver complementary logistics solutions for a broad customer base across Oceania.
“Combining DP World Australia’s terminal operations with Silk Logistics’ value add services enhances our capability to deliver enhanced solutions for customers.”
The transaction is subject to shareholder approval of Silk Logistics and standard closing conditions, including necessary regulatory approvals, and is expected to be completed in the first half of 2025.