- Silk Logistics (SLH) enters a binding agreement to acquire the Fremantle Freight & Storage Group through the acquisition of Brightflow Enterprises (FFS)
- Established in 2000, FFS provides wharf cartage, warehousing, quarantine and fumigation amongst other port services
- The acquisition price consists of an upfront $23.6 million payment with an additional $7.8 million payable on achieving financial milestones before July 31, 2023
- The acquisition will expand Silk’s port logistics service offering and increase its ability to compete for contracts with blue-chip customers
- Silk is up 1.89 per cent on the market with shares trading at $2.16 at 2:34 pm AEST
Silk Logistics (SLH) has entered a binding agreement to acquire the Fremantle Freight & Storage Group through the acquisition of Brightflow Enterprises (FFS).
Established in 2000, FFS provides wharf cartage, warehousing, quarantine and fumigation amongst other port services.
It generates more than $29 million in revenue per year as well as strong earnings and operating cashflow.
The acquisition price consists of an upfront $23.6 million payment with an additional $7.8 million payable on achieving financial milestones before July 31, 2023.
The purchase will be funded through cash reserves and debt facilities, and subject to customary closing conditions, is expected to be completed before September 1, 2022.
The acquisition will expand Silk’s port logistics service offering and increase its ability to compete for contracts with blue-chip customers.
“FFS is a strategically important acquisition and establishes Silk’s Port Logistics capabilities in Perth. This will allow us to extend our elevated customer service offering nationally,” CEO Brendan Boyd commented.
“FFS is an attractive opportunity, the business operating philosophy is highly aligned with Silk’s offering and will deliver operational efficiencies as well as further revenue growth.
“Silk also gains an exceptional team at FFS, who are the key to their success and will continue to drive significant value for FFS and the broader Silk business.”
Silk was up 1.89 per cent on the market with shares trading at $2.16 at 2:34 pm AEST.