Aramex continues African expansion with acquisition
Aramex has made its biggest acquisition yet, entering the South African market with full completion of a deal to buy Berco Express. The move comes just two weeks after the Middle East’s largest courier company announced a major partnership to expand its presence in China, marking another big move to expand the global footprint of Jordan-based Aramex.
It also follows on from the acquisition of OneWorld Courier and In-Time Couriers in Kenya earlier this year, with which the addition of Berco Express continues a long-term strategy at Aramex for building its presence in emerging markets like Africa.
Fadi Ghandour, the founder and CEO of Aramex, said his company had been eyeing “significant” growth prospects in the South African market for some time now.
“Our acquisition of Berco Express, a company that we have long admired for its great culture, brilliant management, and leading brand, will introduce exciting growth and development opportunities for us in Africa,” said Ghandour.
“We believe that this decade will be Africa’s, and with six of the world’s 10 fastest-growing countries over the past decade in Africa, we are committed to the future of the continent.”
Berco Express
Berco Express was part of the Berco Group, formed in 1992 by Bernard Cox, currently operating a network with 15 branches and four warehouses throughout South Africa and a workforce numbering upwards of 700 people.
The company has been offering services including international and domestic courier delivery, same-day express delivery, overnight express services, express cargo and economy freight services.
Aramex had been working with Berco since 2005 as part of its global distribution alliance.
Cox, the outgoing chairman of Berco Express, said he was happy to hand over the reigns of Berco Express to “a company that shares our culture and ethics”.
Aramex said it will introduce its full range of services, from integrated logistics and freight forwarding through to international and express delivery, as well as informational and digital services, to South Africa via Berco.
However, Andy van der Velde, Berco Express chief executive, insisted: “Our South African customers will continue to experience the excellent levels of service for which Berco is known.”
Once the initial service offering is integrated with the Aramex model, the company is planning to expand further in the Southern Africa region, opening additional offices and warehouses while training and developing local workers.
Hussein Hachem, the Aramex CEO for Middle East and Africa, said: “We will use South Africa as a platform for our expansion into the Southern Africa region, while connecting South Africa, and the wider region, to global trade hubs.”
Traded on the Dubai Financial Market, Aramex (DFM: ARMX) now operates across 56 countries, with 9,000 people working within 313 locations.
