Aramex boosts retail presence in South Africa with acquisition
Aramex has made another acquisition to strengthen its presence in Africa — franchise shipping retail business PostNet South Africa. The Dubai-listed, Jordan-headquartered company said today that the 100% buyout from owner OneLogix Group came for a $16.5m offer.
Aramex said PostNet provided South Africa’s largest privately-owned counter network for document and parcel shipping, to bring its services to more retail customers.
The firm provides a network of 287 stores that offer services for businesses and entrepreneurs as well as households and consumers, including shipping, copying, printing, stationery and mailboxes.
Starting up in 1994, PostNet now serves more than 55,000 customers each day across South Africa, Aramex said.
The new owners said that it would hold the master franchise for PostNet, working closely with existing PostNet franchisees to continue growing the brand in South Africa.
But, Aramex will now be providing its business-to-consumer services, including international and domestic express shipping and e-commerce services, through PostNet locations across the country.
“Investing in e-commerce”
Hussein Hachem, the Aramex chief executive, said: “As we continue to scale Aramex into new growth markets and bridge trade corridors, this acquisition will expand Aramex’s volume of business in Africa considerably.
“Investing in growth markets’ e-commerce sectors is also part of our wider strategy to maintain Aramex’s position as an e-commerce market leader, which is why we are disciplined in our approach to potential acquisition targets. Aramex only targets companies such as PostNet who are a perfect strategic fit in order to leverage their suitable, scalable synergies with our existing infrastructure.”
Seeking growth in emerging markets, Aramex has been investing particularly in expanding its presence in Africa and Asia in recent years with acquisitions, including its entrance into South Africa in 2011 when it acquired Berco Express.
The company said taking over PostNet South Africa provides “significant opportunities” to continue its expansion in the region, jumping on opportunities for growth in demand for logistics, delivery and business solutions in South Africa.
Chris Wheeler, Chief Executive Officer of PostNet, said Aramex was the “right partner” to further expand the brand in South Africa “as well as across Africa”.
He said: “We are very proud of the PostNet business and network we have built in South Africa over the past two decades. During this time, PostNet has grown into one of the country’s most trusted and respected brands. Our reach across South Africa, in addition to the range of logistics and business solutions we provide, have resulted in significant competitive differentiation for our business and brand.”
