Freightways Limited entered into an agreement to acquire Allied Express Transport Pty Limited from McDowell family for AUD 160 million.

Freightways Limited (NZSE:FRE) entered into an agreement to acquire Allied Express Transport Pty Limited from McDowell family for AUD 160 million on August 22, 2022. As per the terms, transaction price will be funded by issuance of the AUD 100 million worth of shares to the McDowell family, and AUD 60 million from cash drawn from Freightways debt facilities. AUD 50 million of the shares issued to the McDowell family will be subject to an escrow on sale for a period of 12 months following completion, and AUD 25m of those shares will then remain subject to an escrow on sale for a further period of 12 months thereafter.

Upon settlement it is expected that Freightways pro-forma net debt to EBITDA will move up to 2.8, consolidating Allied ExpressÆs EBITDA and including lease liabilities of both Freightways and Allied Express. KPMG N.V. acted as an accountant, K&L Gates LLP and Russell McVeagh acted as legal advisors to Freightways Limited (NZSE:FRE). Ash Street Partners Pty Ltd acted as a legal advisor to Allied Express.