Company News, Transport News

Silk Logistics makes freight logistics acquisition

Silk’s latest acquisition helps it gain leverage in the Victorian port logistics market

Silk Logistics has announced it has entered a binding agreement to acquire Melbourne-based port and bulk logistics provider Secon Freight Logistics.

The acquisition is subject to conditions precedent customary for a transaction of this nature.

Secon is a freight industry leader established in 1969 with loyal and long-standing clients and a reputation for service excellence.

Secon currently has around 160 staff across two Victorian sites that allows it to provide specialised port logistics, bulk logistics, warehouse and distribution services.

Owned by the Considine family, current CEO Daniel Considine and other members of the family will continue in existing roles following the acquisition.

Silk Logistics CEO Brendan Boyd says the acquisition was done to increase Silk’s prominence in Victorian port logistics while adding a complementary bulk logistics platform to its operations.

“Th acquisition of Secon adds immediate scale to Silk’s Victorian footprint, consistent with our strategy as an integrated ‘port-to-door’ provider,” Boyd says.

“Further, this acquisition provides Silk with a significant platform in national bulk logistics, unlocking demand from our existing blue chip customer base as well as other potential cross-selling opportunities.”

Secon will look to leverage immediate cross-selling opportunities across respective client bases, with Silk generating more than $65 million of annual revenue.

The acquisition is expected to contribute positively to Silk’s group earnings immediately and be more than 10 per cent earnings per share.

The acquisition price consists of $30 million payable upfront, $5 million in Silk shares and a deferred earn-out payment.

Previous ArticleNext Article
Send this to a friend