Singapore Post (SingPost) has announced it will sell its Freight Management Holdings (FMH) business to Pacific Equity Partners (PEP) for A$775.9m (US$504.3m).
With PEP as its new owner, FMH Group will be well-supported to build on its strong foundation, accelerate its growth strategy and continue delivering outstanding value and market leading service to its customers, according to Simon Slagter, CEO of FMH Group.
“This is an exciting milestone for FMH Group. We have built a foundation of trust with our customers, achieved significant growth, and led the way in providing excellent logistics services,” Slagter said. “The investment of Pacific Equity Partners will help us take the next leap forward, empowering us to further enhance our technology platform, turbocharge our business development function and pursue strategic acquisition opportunities, strengthening our position as industry leader and unlocking even greater value for our customers.”
PEP managing director David Brown said, “We are thrilled to welcome FMH Group to our portfolio. FMH Group has a stellar track record of growth, a passionate team and a clear and compelling trajectory. We look forward to supporting them to build on their success and facilitate further opportunities.”
SingPost intends to use some of the proceeds of the sale of FMH to repay borrowings, in particular the A$362.1m (US$235.3m) debt for the financing of the acquisition of FMH.