Freightways Acquires Dataprint

Freightways Acquires Dataprint

Auckland, 2 July 2012 - Freightways Limited (FRE) has extended its presence in the domestic business mail market with the purchase of the business and assets of Dataprint NZ Limited (Dataprint), with immediate effect.

Dataprint is a full service mailhouse that provides its customers with both physical and digital solutions for their transactional and marketing mail. These services are complementary to the existing suite of mail services already offered by Freightways’ DX Mail business. Dataprint will operate as a stand-alone business alongside DX Mail. It is expected that customers of Dataprint, DX Mail and the wider Freightways group will all benefit from the expanded service offering.

The initial purchase price paid for Dataprint is $3 million, with a further $3.5million payable over a three year period, subject to performance targets being achieved. Forecast revenue of $6 million and EBITDA of $1 million, are expected to be generated in the first full year of Freightways’ ownership. This acquisition is expected to be immediately earnings per share (EPS) positive and it will be fully debt-funded from headroom available in Freightways’ existing finance facilities.

Freightways operates in the express package, business mail and information management markets. The acquisition of Dataprint is consistent with Freightways’ strategy to develop growth opportunities that complement its existing operations.

ENDS

© Scoop Media