MELBOURNE-based Silk Logistics has acquired Fremantle Freight & Storage Group for $23.6 million upfront, and a further $7.8 million contingent on achieving financial milestones over the next year.
Silk Logistics is an ASX-listed company that specialises in port logistics.
And, FFS operates in four sites in metropolitan Perth. It provides wharf cartage, warehousing, quarantine, fumigation and other complementary port-related services.
An ASX announcement from Silk Logistics said the acquisition would add immediate scale to Silk’s WA footprint. Further, the acquisition is expected to unlock demand from Silk’s existing blue chip customer base as well as other potential cross-selling opportunities.
Silk CEO Brendan Boyd said the acquisition establishes Silk’s port logistics capabilities in Perth.
“This will allow us to extend our elevated customer service offering nationally. FFS is an attractive opportunity, the businesses operating philosophy is highly aligned with Silk’s offering and will deliver operational efficiencies as well as further revenue growth,” he said.
“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.”
