Freightways Acquires Information Management Businesses in Melbourne and Canberra
Freightways Limited (FRE) has extended its presence in the Australian information management market with the purchase of National Records Managers (NRM) based in Canberra and Fine Paper Suppliers (FPS) based in Melbourne, both with effect from 1 April 2008.
NRM operates a document and data storage business in Canberra. 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 Canberra market, having previously operated through an agency arrangement with NRM.
FPS operates a document destruction and paper recycling business in Melbourne. It will be merged with FRE's existing Shred-X Melbourne operations that were established in July 2007.
FRE's Managing Director Dean Bracewell confirmed the combined purchase price for the two acquisitions at A$5.9 million. It is expected that these businesses will generate EBITDA in total of approximately A$1 million in the 2009 financial year.
These acquisitions are expected to be immediately EPS (earnings per share) positive, he says.
FRE which operates in the express package, business mail and information management markets last week also announced the acquisition of Auckland-based express package business NOW Couriers. 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 Mr Bracewell.