Freightways Acquires Aust, NZ Info Management Businesses

Media Release

Freightways Acquires Information Management Businesses in Australia and New Zealand
AUCKLAND, 9 December 2013: Freightways Limited (Freightways) has extended its presence in the Australian and New Zealand information management market with the purchase of two document destruction businesses:

• Advance Security Destruction Services (Advance) provides secure document destruction services, predominantly in Sydney with smaller operations in Melbourne, Canberra and Brisbane; and
• Docushred, based in Hastings, provides secure document destruction services across Hawke’s Bay and neighbouring regions.

Advance will underpin Freightways’ New South Wales secure document destruction operation, further strengthening the Australian nationwide service operated by its subsidiary, Shred-X Pty Limited. Docushred will extend the geographic reach of Freightways’ New Zealand business, Document Destruction Services. These acquisitions are effective from 1 December 2013.

The combined purchase price for the above acquisitions, including execution costs, is approximately $13 million. It is estimated that these businesses will generate annualised revenue in the region of $6 million, and earnings (operating profit) before interest, tax, depreciation and amortisation (EBITDA) of approximately $2.5 million once the respective integrations with Freightways’ existing operations are completed. The integration is planned to occur by 1 February 2014 and both acquisitions expected to be immediately EPS (earnings per share) positive.

Freightways operates in the express package & business mail and information management markets. These acquisitions are consistent with Freightways’ strategy to develop growth opportunities that complement its existing capabilities and are in addition to the Information Management acquisitions (Document & Data Storage Management, Brisbane and Document Destruction Services, Dunedin) announced by Freightways in its 31 October 2013 Trading Update.

ENDS

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