Singapore Post has entered into a sale and purchase agreement with Pacific Equity Partners (PEP) for the sale of its Australian business, Freight Management Holdings.
PEP will acquire FMH Group at an enterprise value of $1.02 billion which translates into $775.9 million in cash.
With PEP as its new owner, FMH Group is expecting to be well-supported to build on its strong foundation, accelerate its growth strategy and continue delivering value and market leading service to its customers.
The news follows Singapore Post’s acquisition of Border Express earlier this year and the announcement that FMH Group had merged with CouriersPlease in July.
According to FMH Group, customers and carrier partners can expect the same high level of service and innovation as the company enters this new phase of growth.
“This is an exciting milestone for FMH Group,” said FMH Group CEO, Simon Slagter.
“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 the company is thrilled to welcome FMH Group to its portfolio.
“FMH Group has a stellar track record of growth, a passionate team and a clear and compelling trajectory,” he said.
“We look forward to supporting them to build on their success and facilitate further opportunities.”
Singapore Post Chairman, Simon Israel, explained that since the company’s initial investment in FMH Group in 2020, it has 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,” Israel said.
The proposed divestment is subject to regulatory approvals such as approvals from the Foreign Investment Review Board of Australia, and Singapore Post obtaining the requisite approval from shareholders in a general meeting of Singapore Post to be convened.
In other news, Krueger has announced the appointment of Steven Teofilo to the role of COO.
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