Aramex buyout to strengthen Australia Post’s international capability
Australia Post is securing full ownership of Aramex Global Solutions (AGS), which provides end-to-end cross-border logistics solutions to a portfolio of iconic global eCommerce merchants.
Australia Post has reached in-principle agreement to purchase from its joint venture partner Aramex PJSC the 60% of AGS it does not already own for approximately US$20 million.
AGS has grown strongly since it was established by Australia Post and global express delivery and logistics company Aramex two years ago, with revenue up more than 60% since 2016 to approximately A$138 million* in 2018.
Australia Post’s exclusive delivery of parcels for AGS in FY18 generated A$40 million of revenue.
AGS enables Australian consumers to shop online globally, connecting international retailers directly with Australia Post’s last-mile delivery and customs clearance capabilities. In addition to delivering significant parcel volumes inbound to Australia, AGS has an established presence in key global eCommerce trade lanes, including Asia, the UK, Europe and the US, providing a valuable platform for continued expansion.
Annette Carey, Executive General Manager, International Services, said “As a wholly-owned subsidiary of Australia Post, AGS provides an established platform to accelerate our international growth strategy.”
“Combining our postal capabilities with AGS’s bespoke eCommerce capabilities enables Australia Post to engage directly with international retailers, providing unique customer solutions to capture strong growth in cross-border eCommerce markets.
“Today’s agreement with Aramex reflects changes to the strategic direction of both organisations, including Australia Post’s commitment to positioning itself as a global provider of cross-border eCommerce.”