Freightways Acquires Archive Security
Freightways Limited (Freightways) advises that it has signed an unconditional agreement to purchase the business and assets of Archive Security Limited (Archive), effective 1 March 2004.
The purchase price of $7.5 million will be paid in two cash instalments, 50% on 1 March 2004 and 50% on 1 June 2004. This acquisition will be funded using existing finance facilities.
Archive has operated in the records management industry in New Zealand for 17 years. It has operations in both Wellington and Auckland. The Auckland operations of Archive will be integrated into Freightways’ existing Auckland operations. The Wellington facility is fully racked for archive box and file storage with sufficient capacity for growth. This will enable the introduction of further archive boxes at low incremental cost. This acquisition of a second Wellington site is timely as Freightways’ existing facility is expected to be fully utilised during this year. This acquisition positions Freightways, by management estimates, as the third largest operator in New Zealand’s record management industry once Archive’s volumes are combined with Freightways’ existing records management volumes.
For the year ended 30 June 2005 Archive is expected to contribute annualised EBITA of approximately $1 million, inclusive of realised cost savings that will result from the integration of this business into the Freightways group.
Freightways operates in three distinct markets being the express package, business mail and information management markets. The acquisition of this business is consistent with Freightways’ strategy to leverage its experience by exploring incremental growth opportunities that complement its existing operations.
For further information contact:
Ph: (09) 571 9670
Fax: (09) 571 9671