Sharechat Logo

Freightways Limited (NZX: FRE) Acquisition of ProducePronto

Tuesday 19th October 2021

Text too small?

Freightways is pleased to announce the acquisition of ProducePronto that will form a part of the Express Package Division. Freightways has signed a conditional sale and purchase agreement and expects to take ownership on 1 November 2021.

ProducePronto operate a 4PL service with 365 day/year, same-day fresh and frozen delivery to convenience outlets nationally and businesses across Auckland. ProducePronto has facilities in Auckland, Wellington and Christchurch and delivers with employees in tri-temperature-controlled vehicles. Their operations are complementary to our express and temperature-controlled capabilities and provide a third horizon of growth building on our successful acquisition of Big Chill in 2020.

ProducePronto’s unique model provides rapid delivery of ambient, fresh and frozen items, and we expect to accelerate its growth by leveraging our existing network. Like Freightways’ other businesses, ProducePronto have created a positive culture and offer high levels of service; they operate a quality logistics model, and they have strong relationships with their customers.

The acquisition benefits Freightways by:

• Accelerating the development of the temperature-controlled express parcel niche,

• Further diversifying our earnings in the chilled and frozen space, and

• Leveraging our core network and capabilities in pick-up, process and delivery.

ProducePronto by the numbers:

• $10m – Purchase price

• $4m – Potential earn-out over 3 years

• $16m revenue and $1.6m EBITDA in FY21, with growth runway

• 1,000 – Business customers across Auckland receiving fruit, milk and lunch deliveries

• 240 – nationwide convenience store deliveries every day receiving fresh and frozen food.

• 41 – Staff including 20 drivers

• 3 – Facilities in Auckland, Wellington and Christchurch

• 365 – Days per year operation

Please see the link below for details

Acquisition of ProducePronto

Source: Freightways Limited



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Property for Industry Limited (NZX: PFI) Strong Valuation Outcome, Penrose Acquisition
3rd December 2021 Morning Report
Fonterra Shareholders Fund (NZX: FSF) Fonterra provides Milk Price, earnings and Q1 update
Kiwi Property Group Limited (NZX: KPG) Signs Sale and Purchase Agreement with IKEA
2nd December 2021 Morning Report
The New Zealand Refining Company Limited (NZX: NZR) Launches Share Purchase Plan
Seeka Limited (NZX: SEK) Confirms Market Guidance
Australia and New Zealand Banking Group Limited (NZX: ANZ) Acknowledges Class Action Proceedings
1st December 2021 Morning Report
Livestock Improvement Corporation Limited (NZX: LIC) Appoints New Chief Executive