Logistics firm Freightways is growing its Australian footprint by acquiring Melbourne-based VT Freight Express in a A$71 million (NZ$81.4 million) deal.
VT Freight Express (VTFE) offers express parcel and palletised freight delivery, specialising in the business sector—particularly building, healthcare, retail, and plumbing.
Freightways said the acquisition aligns with its existing Allied Express operations in Australia, which focus on consumer deliveries, and anticipates cost savings across both businesses.
Freightways will finance the acquisition using existing and new bank loans, with the deal set to close early next year.
VT Freight Express recorded annual revenues of A$77 million for the year ended October, with Freightways forecasting a 6% earnings-per-share boost in the acquisition’s first year.
Freightways plans to run VTFE as a distinct brand. It will retain its leadership while sharing resources with the parent company where feasible.