Yang Kee Logistics Pte Ltd has completed its acquisition of New Zealand freight and logistics company Fliway Group for $52.1 million.
This makes it the first and largest Singaporean Third Party Logistics (“3PL”) player to operate in New Zealand and the Oceania region.
This second major strategic Oceania acquisition would boost the group’s revenue by another $81.9 million, bringing its group revenue to over S$400 million. The combined Yang Kee group will now have a headcount of over 1250 employees in 12 countries across Australia, China, Hong Kong, South-east Asia and the US.
“Our vision as a home-grown logistics player has always been to go global, and we are proud that Yang Kee is the very first Singaporean logistics company with 3PL capabilities to operate in New Zealand, with the largest footprint across Oceania," says Ken Koh, Group CEO of Yang Kee Logistics.
"We saw huge opportunities in the Oceania region as both New Zealand and Australia enjoy strong trade relations with Asia, and with each other. This gives us the potential to fully leverage on these key trade lanes, to facilitate cross Oceania trade as well as trade flows between Oceania and Yang Kee’s existing networks in China and South East Asia.”
With a stronger foothold in the region which comes on the back of Yang Kee’s first Oceania acquisition of Australia logistics company Axima Pty Ltd (“Axima”) in March last year, Yang Kee will be looking into yielding greater synergies from the network integration of shared international freight volumes between Fliway and Axima and cross selling opportunities in their combined customer bases to Asia.
“This is a great milestone for both the Fliway Group and Yang Kee, and significantly strengthens our position across the Tasman and in the Asia Pacific Region – providing opportunities to service our customers beyond New Zealand and offering further project options, centres of excellence, career development and progression for our people locally and globally,” says Duncan Hawkesby, managing director of Fliway Group.