First international acquisition bolsters regional offering
Australia-Asia freight specialist Wiseway Group has embarked on its first cross-border acquisition with the purchase of Singapore-based TAF E-Logistics.
TAF has more than 30 years of experience serving Singapore and the American and Southeast Asian markets.
TAF had a revenue of A$1.7 million and a positive operating margin before tax for the year ended December 31, 2020, and as of June 30, 2021, had A$1.1 million in net assets.
Wiseway, through subsidiary Wiseway Singapore, will pay A$1.1 million for the purchase.
The takeover is subject to regulatory conditions and is anticipated to complete on or around August 13.
“We look forward to completing our first cross-border acquisition and welcoming TAF to our Group,” Wiseway managing director Florence Tong said.
“This is a strategic opportunity to establish on-the-ground presence in the heart of Southeast Asia’s freight and logistics hub and support our growth plans in the region.
“This in-country presence in Singapore will deliver valuable supply chain efficiencies to our operations in Southeast Asia and open new gateways for revenue synergies across our broad network of shipping destinations, especially within our key business divisions of air freight, perishables, and imports.
“Importantly, our customers will benefit from an expanded range of cost-effective freight options that cater to their everyday shipping requirements.
“These benefits of choice and value are exactly what customers expect from a globally integrated freight and logistics operator like Wiseway, and we will continue to work hard every day to meet these expectations.
“This acquisition is a natural stepping-stone for Wiseway to expand its presence in Asia and to drive long term growth for shareholders.’’
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TAF CEO Brandon Teo said the company is excited to be joining the Wiseway Group.
“We are confident that being part of a company with established global capabilities is the right next step for TAF and that together we can take advantage of the opportunities inherent in the Southeast Asian region.”
TAF provides a full range of services including customs brokerage and clearance, local transportation, and cross-border trucking between Singapore, Malaysia, and Thailand, in addition to international freight forwarding (air and sea) to Indonesia & other ASEAN countries.
It runs its main operations from a customs-bonded warehouse, strategically located within the Singapore Changi Airport’s Airfreight Centre.
“Singapore is a global shipping and air cargo hub and is already an integral shipping destination within our global network,” Tong added.
“This acquisition will uniquely fast-track the build-up of our local capabilities in Southeast Asia and place Wiseway on the doorstep of the region’s fastest growing economies including Indonesia, Thailand, Malaysia, and Vietnam.’’
Wiseway’s expansion into Singapore follows earlier operational expansions across Australia, New Zealand, and the Asia Pacific, including established branches in Guangzhou and Shanghai, and a recent expansion of US operations through a new company branch in Los Angeles, California.
“Wiseway has established a successful track record in expanding into overseas markets, and this acquisition is an exciting milestone on our strategic growth journey,” Tong said.