New Zealand company Freightways has bought Allied Express as it continues transitioning into Australia’s freight market
New Zealand express delivery group Freightways has finalised a $160 million acquisition of courier and express freight provider Allied Express.
The acquisition shows Freightways is looking to continue expanding in Australia, as it will take over Allied Express’s delivery services through a network of leased depots in Australian cities.
Freightways says the deal will help increase its presence and range of services that it can offer in Australia as it will continue its activities in the neighbouring country.
The acquisition is set to be completed on or after September 30 and will establish a platform for Freightways to continue growing through its entry point to the Australian market.
As part of the deal, Freightways will pay the current Allied Express owners in the McDowell family $160 million for 100 per cent of its shares.
The deal will be funded by a $100 million shared issuance to the McDowell family, who will become substantial shareholders in Freightways.
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“This transaction gives us a successful model for enhancing our offering on both sides of the Tasman, leveraging Freightways’ core capabilities in express pickup, processing and delivery while creating a niche in oversized freight at the same time,” Freightways CEO Mark Troughear says.
“Allied Express has established a strong and highly competitive position in the Australian market over 40 years in specialised logistics.
“Its ability to handle larger items sets it apart from others with a service that is highly desired by large corporates and has benefited from the recent acceleration of e-commerce.”