Freightways Acquires Information Management Business in Perth
Freightways Limited (FRE) has extended its presence in the Australian information management market with the purchase of the business and assets of Access Information Management (Access) based in Perth, with immediate effect.
Access operates a document and data storage business in Perth. It will be managed by FRE's Australian-based DataBank (now TIMG) team. This acquisition results in DataBank (now TIMG) establishing its own direct presence in the Western Australia market as well as being FRE's first business in this region.
The purchase price for Access is A$3.5 million. It is expected that Access will generate EBITDA of approximately A$0.6 million in the 12 months following its acquisition and be immediately EPS (earnings per share) positive.
FRE which operates in the express package, business mail and information management markets earlier this year purchased National Records Managers in Canberra and Fine Paper Suppliers in Melbourne. These recent acquisitions are consistent with FRE's strategy to develop growth opportunities that complement its existing operations on both sides of the Tasman, says FRE Managing Director Mr Bracewell.
In July 2006 Freightways made its first entry into the Australian market with the acquisition of DataBank (now TIMG), the No.2 Data Storage business in the Australian Information Management sector. The Access purchase now gives FRE a national presence across Australia with its own operations in Queensland, New South Wales, Victoria, South Australia, Australian Capital Territory and Western Australia and agency relationships in the Northern Territory and Tasmania.
At the company ASM last month, Mr Bracewell announced that, for the three months ending 30 September 2008, Freightways had posted an increase in earnings before interest, tax, depreciation and amortisation (EBITDA) of 8% and an increase in net profit after tax (NPAT) of 3% compared to the prior corresponding period.