Freight firm snaps up New Zealand Kiwi Express
FREIGHTWAYS has added another courier company to its stable, paying $3.5 million for Kiwi Express.
“We think it will be a great complementary fit with the rest of the courier businesses we operate under the Freightways banner,” managing director Dean Bracewell said. Freightways had no plans to make any changes to Kiwi Express, he said.
Despite being a small company, Kiwi Express was well established in the point-to-point delivery market in Auckland and Wellington and had a stable customer base.
For the year to June next year, Kiwi Express is expected to add $700,000 of ebitda earnings to Freightways.
The purchase had been funded using existing finance facilities, Mr Bracewell said.
Other brands owned by Freightways include New Zealand Couriers, Post Haste Couriers, Castle Parcels, SUB60 and Security Express.
Freightways and arch-rival New Zealand Post/DHL, both have markets shares of at least 40 per cent.
In the annual result last month, Mr Bracewell said another $22 million had been secured to fund further acquisitions.
“We’ll continue to look at acquisition opportunities.”
Net profit was up 43 per cent to $21.99 million for the year to June.
