Singapore Post Limited (SingPost)has announced the finalisation of the sale of its Australian arm, Freight Management Holdings, to Pacific Equity Partners (PEP).
The transaction has followed overwhelming approval at the Extraordinary General Meeting held on March 13, in which 99 per cent of shareholders voted in favour of Singapore Post’s divestment.
The sale was valued at an enterprise value of A$1.02 billion and has generated gross proceeds of approximately A$781.5 million and an expected gain of $289.5 million.
SingPost has indicated it will allocate the sales proceeds towards reducing debt, including the repayment of A$362.1 million in borrowings related to the initial FMH acquisition.
SingPost’s divestment of FHM was first announced on December 2, 2024 and the sale to PEP followed a competitive international bidding process.
The sale to PEP has returned FMH to Australian hands. PEP is an Australian-founded private market funds manager that currently claims to hold $14 billion of assets under management and to have made close to $50 billion of transactions.
Freight Management Holdings comprises of efm Logistics, FLIP, CouriersPlease, Border Express, BagTrans, Niche Logistics, GKR Transport, Formby Logistics and Spectrum Transport.
“We are pleased to announce that FMH Group has been acquired by Pacific Equity Partners,” an FMH statement reads.
“As part of this transition, we also welcome two new private investors: Damian Degenhardt, the founder of efm Logistics, and prominent businessman and highly-respected industry leader, Paul Little AO, who becomes the Group’s Chairman.
“Their investment reflects confidence in our vision and positions us for long-term success, providing the capital and backing to accelerate our next phase of growth.
“In this new chapter we’ll build on our strong foundation by investing further in our proprietary technology, exploring opportunities for strategic acquisition and expanding business development.
“We remain focused on delivering exceptional service, while driving innovation and unlocking new opportunities for our team and customers.
“Thank you to our customers, partners and team members for their continued trust and support.
“We look forward to the opportunities ahead and to working with our new shareholders to shape the next phase of our success.”
“We are delighted to officially welcome FMH Group to our portfolio,” PEP Managing Director David Brown says.
“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.”
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