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Addition of New Zealand based courier strengthens Aramex operations in Asia-Pacific
Acquisition in line with Aramex's asset-light business model
Deal further expands Aramex's global e-commerce proposition
Dubai, UAE; January 21, 2016: In a recent expansion of its global presence, Aramex, a leading global provider of comprehensive logistics and transportation solutions, today announced its acquisition of Fastway Limited (Fastway Couriers), a leading courier service provider headquartered in New Zealand. The deal is Aramex's second acquisition in the Asia-Pacific region to date and involves a 100 per cent buyout of the company's business in New Zealand and Australia for NZD $125.277 million (Approximately AED293.650 million).
Established in New Zealand in 1983, Fastway Couriers' global network includes 63 regional depots and 1,500 courier franchisees across Australia, New Zealand, Ireland, Northern Ireland and South Africa. With more than 250 franchise partners across New Zealand alone, the company transports 16 million parcels globally to 75,000 customers each year. Its courier franchisees offer cost effective, reliable and fast delivery services and are supported by the latest innovative technologies and online parcel track and trace facilities.
Commenting on the acquisition, Hussein Hachem, Chief Executive Officer of Aramex said:
"We are excited to add Fastway Couriers to Aramex's global network. The company has a strongly performing business, a well-recognised brand, a leadership position in the Asia-Pacific market, an excellent management team and large global customer base. Following our recent deals in Thailand and Australia last year, acquiring Fastway Couriers is the next logical, strategic move for us. Having scalable synergies with our own infrastructure and extending our reach across the region, the acquisition now makes us present in New Zealand for the first time and strengthens our existing operations in Australia. Enhancing and expanding our operations in the region also allows us to further contribute to the development of Asia-Pacific's e-commerce sector and facilitate cross-border trade."
Further commenting on the acquisition, Othman Aljeda, Chief Executive Officer of Aramex Asia said:
"This deal gives us significant opportunities to expand our e-commerce proposition and take advantage of the increasing demand for online shopping delivery solutions and small parcel delivery services in the Asia-Pacific. New Zealand and Australia are two of the most rapidly growing e-commerce markets in the region and by acquiring Fastway Couriers we can now serve more businesses and consumers shopping online. Extending our operations to New Zealand and enhancing our existing business in Australia also strengthens our wider Aramex global network."
This move further deepens Aramex's operations across the Asia-Pacific region, which was the largest e-commerce market in the world this past year. Its total B2C e-commerce turnover reached US $770 billion, higher than Europe and North America. Asia-Pacific's B2C e-commerce market is also growing at a much faster pace than other markets, growing by 44% against 14% for Europe and 12% for North America respectively. This rapid growth trend is increasing the demand for efficient and reliable small parcel delivery services and Fastway Couriers experienced significant growth last year.
Fastway Couriers franchisee model also makes it a strong fit for Aramex's asset-light business model. The firm contracts independent couriers franchisees who use their own vehicles for pickup and delivery. This results in increased efficiency, extended reach across the countries it operates in and on-time delivery at the lowest possible cost to the customer.
Bruce Speers, Group Managing Director of Fastway Limited, said:
"We are very proud of our company and what we have built up over the past 32 years, maintaining a strong brand and loyal customer base. The investment we have made in the company and our successful focus on providing low costs, optimal delivery times and extending our reach globally has resulted in significant growth for our business and brand. The recent spike in online shopping has also increased our consumer base and demand for our services considerably, positively impacting our reputation in the market as we continue to maintain the highest levels of customer service. This acquisition allows our customers to benefit from Aramex's global network, international expertise and scale, while still being able to enjoy our personalised, tailored services."
This acquisition strengthens Aramex's Asia-Pacific proposition and global footprint, building on the company's owned operations in Singapore, Malaysia, Indonesia, Hong Kong, China and Australia, and helps facilitate smooth cross-border movement across the region.
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About Aramex:
Aramex (DFM: ARMX) is a leading global provider of comprehensive logistics and transportation solutions. Established in 1982 as an express operator, the company rapidly evolved into a global brand recognized for its customized services and innovative multi-product offering. Traded on the NASDAQ from 1997 to 2002, Aramex today is a publicly traded company on the Dubai Financial Market, employing more than 13,900 people in 354 locations across 60 countries and leads a strong alliance network providing global presence, and bringing together 40 independent express companies from around the world. The range of services offered by Aramex includes integrated logistics solutions, international and domestic express delivery, freight forwarding, secure records and information management solutions, and e-services, including e-business solutions and Shop and Ship.
For more information, please visit us at www.aramex.com.
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About Fastway
Established in New Zealand in 1983, Fastway's global network includes 63 regional depots and 1,500 independently owned and operated courier franchisees across Australia, New Zealand, Ireland, Northern Ireland and South Africa. With more than 800 franchise partners across Australia alone, the company transports more than 30 million parcels globally to 75,000 customers each year. Its courier franchisees offer cost effective, reliable and fast delivery services and are supported by the latest innovative technologies and online parcel track and trace facilities.
For more information, please visit us at www.fastway.com.au
© Press Release 2016
