Freightways Acquires Kiwi Express
Freightways Limited (Freightways) advises that it has signed an unconditional agreement to purchase the business and assets of point-to-point courier Kiwi Express, effective 1 October 2005.
The purchase price of $3.5 million will be paid in cash and funded from existing finance facilities.
Kiwi Express has operated in the point-to-point courier niche of the express package industry in New Zealand for many years. It has operations in both Wellington and Auckland that will nicely complement Freightways’ existing presence in those locations. This acquisition brings a further iconic brand into Freightways existing stable of express package businesses, which also includes New Zealand Couriers, Post Haste Couriers, Castle Parcels, SUB60 and Security Express.
For the year ended 30 June 2006, Kiwi Express is expected to contribute annualised EBITDA of approximately $700,000.
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 capability by exploring growth opportunities that complement its existing operations.
For further information please contact:
Ph: (09) 571 9670
Fax: (09) 571 9671