Dubai-based logistics company Aramex has acquired New Zealand’s Fastway Couriers for $125.3m to boost its position in the Asia Pacific market - the world’s fastest growing for e-commerce deliveries.
Fastway's global network includes 63 regional depots and 1,500 franchisees across Australia, New Zealand, Ireland, Northern Ireland and South Africa.
But Aramex CEO Hussein Hachem singled out the company’s leadership position in the Asia-Pacific market.
Hachem said Fastway was a logical acquisition following recent Aramex’s acquisitions in Thailand and Australia last year.
“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,” he said.
Othman Aljeda, CEO of Aramex Asia said the deal would help Aramex take advantage of the increasing demand for online shopping delivery solutions and small parcel delivery services in the Asia-Pacific.
He said the Asia-Pacific region was the largest e-commerce market in the world last year with a business to consumer e-commerce turnover of $770bn, higher than Europe and North America.
It is also the fasting expanding e-commerce market, growing by 44% annually compared to 14% for Europe and 12% for North America respectively.
Aramex said this rapid growth trend is increasing the demand for efficient and reliable small parcel delivery services
Fastway contracts independent courier franchisees who use their own vehicles for pickup and delivery, leading to increased efficiency, extended reach and low costs for on-time deliveries, Aljeda added.
The company transports 16m parcels globally to 75,000 customers each year.
Aramex owns operations in Singapore, Malaysia, Indonesia, Hong Kong, China and Australia.