Singapore Post has announced the acquisition of a 62.5% stake in the domestic freight forwardingcompany Famous Holdings Pte Ltd (FH) for S$60 million (€36.7 million) to strengthen its e-commerce
logistics activities responding to the continuous boom in the sector.Logistics is one of the key business areas in SingPost’s transformation plan and an importantgrowth driver, SingPost explained.
Both parties have also agreed on SingPost buying the remaining 37.5% stake at the end of 2015, ‘at a price to be determined based on an agreed formula’.
As an established sea freight consolidator and freight forwarder founded in 1988,Singapore-based FH has a regional network with offices in six countries including Singapore, Japan,Australia, China, Malaysia and the USA.
SingPost CEO Wolfgang Baier said: “As part of our strategy to grow the logistics business, weare strengthening our capabilities to provide fully integrated logistics solutions to ourcustomers, both in Singapore and in the region. Many of these customers are in the area ofe-commerce. FH’s freight forwarding capabilities complement our e-commerce logistics capabilitiesin regional fulfillment & warehousing, as well as our postal & parcel deliverynetworks.”
He added that SingPost has been expanding its regional logistics network with new or enlargedfacilities such as additional warehouses and a second regional air freight hub in Singapore andstrategic partnerships.
“This investment in an experienced freight forwarding company with a strong regional networkfurther complements our efforts to grow our regional logistics and e-commerce business wherecustomer demand for integrated solutions is strong,” Baier concluded.
Earlier this month, SingPost announced plans to buy local self-storage firm General Storage forS$37 million (€23 million) to expand its storage and warehousing activities. Over the last fewyears the listed postal company has also acquired stakes in Malaysian firm GD Express, Chinese firmShenzhen 4PX Express and Vietnam-based Indo Trans Logistics.
