SILK Logistics has acquired Melbourne-based port and bulk logistics provider Secon Freight Logistics.
Secon operates with about 160 staff across two sites in Victoria. It provides port logistics, bulk logistics, warehouse and distribution services.
Silk CEO Brendan Boyd said the acquisition adds immediate scale to Silk’s Victorian footprint.
“This acquisition provides Silk with a significant platform in national bulk logistics, unlocking demand from our existing blue chip customer base as well as other potential cross-selling opportunities,” he said.
The acquisition price consists of $30 million in cash, $5 million in Silk shares, and a deferred earn-out payment determined with reference to Secon’s performance over the FY24 and FY25.
Silk, in an announcement to the ASX, said the acquisition would increase its prominence in Victorian port logistics.
Secon’s current CEO Daniel Considine and other members of the Considine family will continue in their existing roles following the completion of the acquisition, which is expected on 30 September.