The transaction will be immediately accretive to SingPost earnings upon completion. The agreement will also further provide SingPost a phased pathway to fully acquire FMH.
In addition, SingPost has entered into an agreement granting FMH an option to acquire 100% of SingPost’s shareholding in CouriersPlease, a leading last-mile parcel delivery with nationwide coverage across Australia.
The full details of the transaction are contained in the SGX announcement and are subject to the necessary regulatory and shareholder approvals.
The agreements accelerate SingPost’s investment in building a second home market in Australia and its continuing transformation into an eCommerce logistics solutions provider in Asia Pacific.
FMH is a leading 4th party logistics (4PL) service company incorporated in Victoria, Australia in 2000. FMH is an asset-light, technology-driven ‘control tower’ business, providing integrated supply chain and distribution solutions under a tradename ‘EFM’ to over 500 businesses across Australia through a 4PL technology platform.
Through the use of proprietary technology, FMH manages and executes its customers’ supply chain and distribution requirements. Utilising its technology, analytics and network, FMH is able to match customers’ freight profile with the optimal carrier, thereby increasing efficiency, utilisation and profitability for both customer and carrier.
FMH has built up a diversified client base across a broad range of industries over the last 21 years. It also has a wide partner carrier base and long-standing relationships with these carriers, with over 150 carriers partnered in the last year.
Based on the audited consolidated financial statements of FMH for its financial year ended 30 June 2021, profit before tax of FMH and its subsidiaries for FY20/21 was approximately A$26.1 million (equivalent to approximately S$25.8 million), up from A$20.3 million (S$20.1 million) from a year ago. The earnings before interest, tax, depreciation and amortisation (EBITDA) of FMH and its subsidiaries for FMH FY20/21 is approximately A$29.4 million (S$29.1 million) up from A$26.0 million (S$25.7 million) from a year ago.
SingPost Group Chief Executive Officer Vincent Phang said that he is confident that FMH will better place SingPost Group to become a key logistics player in Australia.
“Since our first investment in FMH last year, we are pleased with FMH’s strong performance. This further investment is the next step for us, as we build Australia as our second home market."
“The acquisition is consistent with our transformation strategy, enabling us to provide an end-to-end B2B2C logistics solution for customers serving both Business-to-Business (B2B) and Business-to-Consumer (B2C) channels, and provide a seamless logistics service within Australia.”
“With FMH becoming a subsidiary of SingPost Group, we can better derive synergies and build scale to further capitalise on the accelerated growth in eCommerce in Australia.”
Details of the transaction are set out in the SGX announcement.
