SYDNEY, AUSTRALIA: Silk Logistics Holdings Limited (ASX: SLH), a leading provider of integrated logistics solutions, has announced the completion of the acquisition of Secon Freight Logistics Pty Ltd, a Melbourne-based transport and warehousing company.

The acquisition was first announced on 4 August 2023.

The acquisition price consists of $30 million in cash and $5 million in Silk shares, with the share issue price calculated based on 30-day VWAP prior to the execution date. The Company will issue 2,502,628 fully paid ordinary shares on or around 11 September 2023 as part of the upfront acquisition price.

The shares will be held in escrow until 30 June 2024. The acquisition consideration also includes a deferred earn-out component (payable in cash) subject to achieving certain EBITDA targets during each year in FY24 and FY25.

The acquisition of Secon Freight will strengthen Silk’s position as a leading provider of integrated logistics solutions across Australia. Secon Freight has a strong customer base in the retail, FMCG, and industrial sectors, and operates a fleet of over 200 vehicles and a network of over 100,000 square meters of warehousing space. The acquisition will enhance Silk’s capabilities in road transport, warehousing, and distribution, and create significant synergies and cross-selling opportunities.

Silk Logistics to acquire Fremantle Freight & Storage Group for upto $31.4mn