Silk Logistics acquires Fremantle Freight & Storage Group

SILK LOGISTICS ACQUIRES FREMANTLE FREIGHT & STORAGE GROUP

Silk Logistics has signed a binding agreement, subject to conditions to acquire the Fremantle Freight & Storage Group through the acquisition of head company Brightflow Enterprises. The strategic acquisition is valued at over $30 million and is expected to elevate Silk Logistics national offering. Fremantle Freight & Storage (FFS) was established in 2000 and operates across four sites in metropolitan Perth providing wharf cartage, warehousing, quarantine, fumigation and other complementary portrelated services. FFS generates annual revenue in excess of $29 million as well as strong positive earnings and operating cash flow and the acquisition adds immediate scale to Silk’s WA footprint and its ability to provide reliable Port Logistics solutions nationally. “FFS is a strategically important acquisition and establishes Silk’s Port Logistics capabilities in Perth,” said Brendan Boyd, Silk CEO. “This will allow us to extend our elevated customer service offering nationally. FFS is an attractive opportunity, the businesses operating philosophy is highly aligned with Silk’s offering and will deliver operational efficiencies as well as further revenue

Fremantle Freight & Storage (FFS) was established in 2000 and operates across four sites in metropolitan Perth providing wharf cartage, warehousing, quarantine, fumigation and other complementary port-related services

Biosecurity preparedness

The Federal Government have announced that a new Commonwealth taskforce will be established to ensure Australia is fully prepared to respond swiftly to growing biosecurity threats.

The Exotic Animal Disease Preparedness Taskforce will be co-chaired by a senior official from the Department of Agriculture, Fisheries and Forestry and the DirectorGeneral of Emergency Management Australia and will include officials from the Australian Defence Force, Australian Border Force and Animal Health Australia.

The taskforce will report to the Minister by September 5, providing advice on any additional measures that need to be taken to strengthen our biosecurity response.

Also, the Senate Rural and Regional Affairs and Transport References Committee have commenced an Inquiry into the Adequacy of Australia’s Biosecurity growth,” he said. “Silk also gains an exceptional team at FFS, who are the key to their success and will continue to drive significant value for FFS and the broader Silk business.” The acquisition is expected to complete before 1 September 2022 and the price consists of $23.6 million payable upfront (subject to customary adjustments) with a further $7.8 million payable contingent on achieving agreed financial milestones for the period ending 31 July 2023.

Measures and Response Preparedness. The Inquiry will specifically consider: a. the adequacy of Australia’s biosecurity measures and response preparedness, in particular with respect to foot-andmouth disease and varroa mite; b. response to and implementation of previous reports into biosecurity; and c. any related matters. The Committee will report to the Senate by 10 October 2022..