Courier firm sold for $125 million

Dubai-based logistics company Aramex have bought Hawke's Bay company Fastway Couriers.

A Hawke's Bay courier company that started in 1983 with "a couple of Chevettes" has been sold for more than $125 million to global Dubai-based logistics company Aramex, as online retailing drives growth in the industry.

The 100 per cent buyout of Fastway Ltd has received approval from the Overseas Investment Office.

Fastway Couriers New Zealand CEO Scott Jenyns said the two companies already had a working relationship.

"Aramex identified the value of Fastway's operations and commitment of our franchisees and employees early on, having partnered with us for almost a year through its international inbound freight business," he said.

"The e-commerce industry is expected to be a major growth driver for the courier and parcel delivery services industry in the future and we will be better positioned to take advantage of these opportunities."

Aramex Asia CEO Othman Aljeda said the acquisition would deliver significant competitive advantages for both companies, for customers and Fastway's Franchisees.

"New Zealand and Australia are two of the most rapidly growing e-commerce markets in the region and by acquiring Fastway we can serve more businesses and consumers online and through our strengthened distribution network," he said.

"Having scalable synergies with our own infrastructure and extending our reach across the region, the acquisition now makes us present in New Zealand for the first time and strengthens our existing operations in Australia. Enhancing and expanding our operations in the region also allows us to further contribute to the development of Asia-Pacific's e-commerce sector and facilitate cross-border trade."

Aramex started in 1982 and was traded on the NASDAQ from 1997 to 2002.

Now a publicly traded company on the Dubai Financial Market, it employs more than 13,900 people in 354 locations across 60 countries.

Services include international and domestic express delivery, freight forwarding and e-services, including e-business solutions.

Fastway's network includes 62 regional depots and 1500 franchisees across Australia, New Zealand, Ireland, Northern Ireland and South Africa. The company transports more than 30 million parcels globally to 75,000 customers annually.

Fastway chairman Brem Ellingham said Aramex recognised the strength of Fastway's franchise model.

"We've come a long way since our humble beginnings in Hawke's Bay in 1983," he said.