Freightways Group (ASX:FRW) has entered into an agreement to acquire the business and assets of VT Freight Express, an Australian express delivery company based in Victoria.
VTFE, founded in 2010, provides B2B parcel and palletised freight services to industries including building, healthcare, retail, and plumbing, with a strong presence in Victoria and growing interstate operations.
The acquisition, valued at $71 million subject to customary adjustments, is expected to be completed on or after Jan. 30, 2026.
VTFE recorded $77 million in revenue for the 12 months ended October, and the transaction is anticipated to be 6% EPS accretive to Freightways in its first year.
VTFE operates an asset-light model using a contractor fleet and leased facilities, similar to Freightways' Allied Express business.
The purchase is designed to expand Freightways’ footprint in the Australian express market, complementing Allied Express’s B2C focus with VTFE’s B2B niche.
Freightways plans to leverage its core express capabilities and maintain VTFE’s leadership team while sharing resources where appropriate.
VTFE currently services all Australian states and territories, employing 49 staff and 87 contractors, and serving over 350 clients ranging from SMEs to multinational corporations.
The acquisition will be funded through a combination of existing and new bank debt facilities.