Qantas and Australia Post buy Star Track Express
Australia Post and Qantas have acquired express road freight operator, Star Track Express, for $750 million.
The companies said the purchase would be made through a 50:50 joint venture and funded from net cash reserves and undrawn credit facilities.
“Star Track Express is a high quality operation that provides superior service levels and has achieved consistent revenue and profit growth,” said Geoff Dixon, CEO of Qantas. “It also comes with an experienced management team that has a proven track record.”
Dixon said the acquisition is consistent with the Qantas strategy of growing its non-airline businesses. “Star Track Express adds to the portfolio of freight businesses in which Qantas is involved, including Australian air Express, a domestic express freight business that has been successfully operated by Australia Post and Qantas for many years.”
Graeme John, MD of Australia Post, said that Star Track Express would be operated as a separate joint venture to ensure its brand, management, operational focus and customer relationships are maintained.
“Our aim is to grow the business to business market for express logistics. The business potential, both in Australia and overseas, means that the market will provide plenty of scope for future opportunities,” John said.
The current CEO of Star Track Express, Derek Lightfoot, and his management team will continue to run the business. Lightfoot and Star Track Express’s founder and owner, Greg Poche, will remain on the Board of Star Track Express.
