January 14, 2015: SingPost, the regional leader in e-commerce logistics and trusted communications, today announced that it has acquired a 90% stake in Famous Pacific Shipping (NZ) Limited (FPSNZ) through its subsidiary Famous Holdings Pte Ltd.
Famous Holdings Pte Ltd has paid an initial consideration of NZD3.6 million for the stake (subject to working capital adjustments) and certain debts owing by FPSNZ to the vendors.
A potential earn-out consideration of effectively up to NZD4.4 million based on the adjusted actual net profit after tax of FPSNZ may also become payable, potentially bringing the total consideration up to NZD 8.0 million.
FPSNZ, established in 1996, is a New Zealand-based freight forwarder focusing primarily on sea and air freight forwarding together with customs clearance for inbound and outbound shipments from New Zealand. Famous Holdings is SingPost's freight forwarding arm with offices in 7 countries namely Singapore, Japan, Australia, China, Malaysia, UK and the USA. It provides freight services as well as other value-added services including customs and regulatory management.
Said Dr Wolfgang Baier, Group Chief Executive Officer of SingPost: "As part of our strategy to grow our regional logistics business, we are strengthening our capabilities to provide fully integrated logistics solutions to our customers, both in Singapore and in the region. This acquisition will allow SingPost to broaden our freight network and establish an entry point into the New Zealand freight market. It also strengthens our capability to provide customers with an integrated ecommerce logistics solution and complements our existing postal and parcel networks."
Over the past 18 months, SingPost has been ramping up its regional logistics capabilities with new or expanded facilities including the development of a S$182 million fully integrated regional ecommerce logistics hub in Singapore which is expected to start operating in mid 2016. SingPost currently has more than 20 warehousing and fulfillment centres in the region.
Added Dr Baier: "In addition, we have also been building up our last mile capabilities to better serve our regional customers. The recent acquisition of CouriersPlease, a leading metropolitan express parcel delivery company in Australia, is a strategic investment to strengthen our capabilities to provide end-to-end solutions in the domestic markets that we are present."
With FPSNZ joining the SingPost stable which already includes CouriersPlease and Quantium Solutions, the Group now has an expanded and end-to-end integrated suite of services to meet the growing customer demands in the Pacific region.