Dubai-based Aramex has expanded its African footprint with the acquisition of PostNet, South Africa-based privately owned printing and shipping service. Aramex bought a 100% stake in the company, in a deal valued at $16.5 million, from OneLogix Group.
“As we continue to scale Aramex into new growth markets and bridge trade corridors, this acquisition will expand Aramex’s volume of business in Africa considerably,” says Aramex chief executive Hussein Hachem. The acquisition will increase Aramex’s e-commerce division, bringing in 287 PostNet stores that service 55,000 customers daily across South Africa. “Investing in growth markets’ e-commerce sectors is also part of our wider strategy to maintain Aramex’s position as an e-commerce market leader, which is why we are disciplined in our approach to potential acquisition targets.”
“Aramex continues to view South Africa as a highly attractive market with significant growth prospects and this acquisition is testimony to our long-term commitment to investing in the country’s sustainable development. The PostNet deal would add many more locations for customers to do business with Aramex,” adds Andy van der Velde, chief executive of Aramex South Africa. Aramex will own the master franchise, but each individual PostNet outlet will continue to be owned and operated by the representative franchise. Each branch will offer Aramex B2C services, covering international and domestic express shipping in addition to its e-commerce Shop-and-Ship.
Aramex reported third quarter revenues increased to Dh922m from Dh824m in the same period last year, while profits jumped 16% to Dh69.5m. The group said that the 12% rise in revenues was driven by its international express and e-commerce operations following investment in infrastructure and innovative technology solutions. Another key driver for growth is the southern African market, which Aramex first entered in 2011 with the acquisition of Berco Express, now known as Aramex South Africa.
“We have entered the final quarter of the year with strong momentum in our business, maintaining our focus on our global growth strategy. We will remain bullish on our outlook for future acquisitions in markets across Asia, the Middle East and Africa in particular, both to build our operations and strengthen our global footprint.”