The company paid an initial consideration of NZD3.6 million for the stake – subject to working capital adjustments – and certain debts owned by FPSNZ to the vendors.
A potential earn-out consideration of up to NZ$4.4 million based on the adjusted actual net profit after tax of First Pacific Shipping may also become payable, and this may potentially bring the total consideration up to NZ$8 million, the company said in a regulatory filing.
Famous Pacific Shipping, established in 1996, is a New Zealand-based freight forwarder focusing primarily on sea and air freight forwarding together with customs clearance for inbound and outbound shipments from New Zealand.
Famous Holdings is SingPost’s freight forwarding arm with offices in seven countries namely Singapore, Japan, Australia, China, Malaysia, UK and the USA. It provides freight services as well as other value-added services including customs and regulatory management.
This marks SingPost’s third major acquisition during the last six months.
In December 2014, it had acquired CouriersPlease Holdings, an Australia-based parcel delivery company, from New Zealand Post Group for A$95 million (S$104.66 million), furthering its expansion into the e-commerce logistics business. In August last year, SingPost had completed the acquisition of F.S. Mackenzie, a freight forwarder based in the United Kingdom.
Over the past 18 months, SingPost has been ramping up its regional logistics capabilities with new or expanded facilities including the development of a S$182 million regional ecommerce logistics hub in Singapore which, is expected to start operating in mid-2016. SingPost currently has more than 20 warehousing and fulfilment centres in the region.
SingPost closed flat at $1.94 Wednesday.