Freightways buys Kiwi Express

Freightways said today it had bought courier Kiwi Express for $3.5 million, effective from tomorrow.

The cash purchase will be funded from existing finance facilities.

Kiwi Express works in the point-to-point niche of the express package market in Auckland and Wellington.

Freightways already owns New Zealand Couriers, Post Haste Couriers, Castle Parcels, SUB60 and Security Express.

In the June 2006 year, Kiwi Express is expected to contribute annualised ebitda (earnings before interest, tax, depreciation and amortisation) of about $700,000.

Freightways shares were unchanged this afternoon on $3.28. They have traded between $2.39 and $3.50 in the last year.

- NZPA