Pacific Equity Partners (PEP) has acquired Freight Management Holdings from Singapore Post.
The sale, valued at an enterprise value of $1.02 billion, marks a significant milestone in Singapore Post’s Board-led strategic review to unlock value for its shareholders.
The transaction follows overwhelming approval at the Extraordinary General Meeting (EGM) held on 13 March where the resolution secured shareholders’ 99-per-cent vote in favour.
The divestment generated gross proceeds of approximately $781.5 million and an expected gain of $343.1 million for the group.
This reflects a levered return on equity of approximately four times Singapore Post Group’s $93.6 million equity investment in FMH over the last four years.
“We are delighted to officially welcome FMH Group to our portfolio,” said PEP Managing Director, David Brown.
“With 27 years of experience supporting Australian businesses to reach their full potential, we’re excited to partner with FMH Group in their next phase.
“Their ability to scale at pace while maintaining a strong customer focus is a testament to their leadership and team culture. We look forward to working together to unlock new opportunities to build on their impressive momentum.”
With PEP being the majority shareholder of FMH Group, the company is joined by two private investors – Damian Degenhardt and Paul Little.
Degenhardt founded the company’s 4PL, efm Logistics, in 2000 and built it into one of the largest organisations of its kind in the Australia and New Zealand regions.
He remained on the Board as Executive Chairman until 2021 when the group was acquired by Singapore Post.
Little is the former Managing Director of Toll Holdings who oversaw Toll Group’s rise to becoming a leading logistics provider in Asia.
Toll made more than 100 acquisitions under his leadership which saw global revenue reach $16 billion.
“As incoming Chairman, I bring the insights and experience gained from leading a logistics business through a period of extraordinary growth,” Little said.
“FMH Group’s rapid ascent is a testament to their vision, strategic investment in technology and relentless pursuit of excellence.
“While I draw on past success, my focus going forward is on supporting FMH Group to continue to lead in a rapidly evolving landscape.”
Simon Slagter will remain as CEO, driving the growth strategy of FMH Group and overseeing the portfolio of companies.
“We have built a business defined by innovation and the pursuit of excellence, earning the trust of our customers and partners,” he said.
“Now, with the backing of PEP and our other investors, we are poised for our next phase of growth.
“Their support will enable us to deepen our investment in proprietary technology, expand our business development function and pursue strategic acquisitions, while we remain committed to unlocking even greater value for our customers and continuing to deliver an outstanding customer experience.”
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