Silk’s recent purchase strengthens its position in the Victorian port logistics sector.
- Silk Logistics Announces New Logistics Purchase.
- Silk Logistics has confirmed another strategic acquisition.
- Silk Logistics has declared a binding agreement to take over Secon Freight Logistics, a renowned port and bulk logistics firm based in Melbourne.
This acquisition is contingent upon standard conditions typical for such transactions.
Established in 1969, Secon is a frontrunner in the freight sector, boasting a legacy of dedicated clients and a track record of outstanding service.
Currently, Secon employs approximately 160 individuals across two Victorian locations, enabling them to offer specialised services in port logistics, bulk logistics, warehousing, and distribution.
Under the stewardship of the Considine family, the present CEO, Daniel Considine, along with other family members, will retain their roles post-acquisition.
Brendan Boyd, CEO of Silk Logistics, expressed that this acquisition aims to bolster Silk’s influence in the Victorian port logistics domain and introduce a synergistic bulk logistics platform to their operations.
“The purchase of Secon amplifies Silk’s presence in Victoria, aligning with our vision of being a comprehensive ‘port-to-door’ service provider,” remarked Boyd.
“Moreover, this move equips Silk with a robust foundation in the national bulk logistics arena, tapping into the needs of our existing premium clientele and opening doors to potential collaborative ventures.”
Secon anticipates capitalising on immediate collaborative opportunities across their client portfolios, with Silk’s annual revenue surpassing $65 million.
The acquisition is projected to instantly enhance Silk’s group earnings and increase earnings per share by over 10 per cent.
The acquisition cost comprises an initial payment of $30 million, $5 million in Silk shares, and a subsequent earn-out payment.