Singapore Post (SingPost) has sold its Australian assets to Pacific Equity Partners (PEP) at an enterprise value of A$1.02bn (€741m).
The key asset in Australia is Freight Management Holdings (FMH), a diversified logistics holding company with divisions across fourth-party logistics, warehousing, transportation and technology.
Other assets include a freight service with 16 facilities and more than 700 vehicles in Australia providing end-to-end interstate logistics service.
The company said the divestment came after SingPost undertook a strategic review of its Australian business and, in the course of the review received several unsolicited offers for FMG. Blackstone, Brookfield, EQT, KKR and local groups, PEP and BGH were in the race for these SingPost assets.
SingPost chairman, Simon Israel, said: “Since our initial investment in FMH Group in 2020, we have witnessed the group achieve extraordinary growth. Now, with its strong market position and growth pathway the board has decided it is time to realise the substantial shareholder value created.”
Part of the proceeds would go to retire the group’s Australian-dollar-denominated debt, said SingPost.
David Brown, MD of Sydney-based Pacific Equity Partners, said: “We look forward to supporting them to build on their success and facilitate further opportunities.” He added that FMH would complement PEP’s existing portfolio, valued at A$12bn AUM across various investment strategies.
Simon Slagter, CEO of FMH Group 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.”
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