In a move that further drives its expansion in the African continent, Aramex, the leading global logistics and transportation solutions provider, today announced its acquisition of the master franchise for the PostNet brand in South Africa. PostNet is South Africa’s largest privately-owned counter network in the document and parcel industry. The transaction involves a 100 per cent buyout of the business from current owner OneLogix Group for $16.5 million.
PostNet provides a one-stop business center for entrepreneurs, businesses, households, and consumers, offering services that include courier, copy, digital print, stationery, mailboxes, and more. Since starting operations in 1994, PostNet South Africa has grown into a chain of 287 stores and services serving 55,000 customers daily across the country. While Aramex will own the master franchise for PostNet in South Africa, each PostNet store in the country will continue to be owned and operated by the respective franchisees. As master franchisee, Aramex will work in close collaboration with each PostNet store, to further grow the retail potential of the brand in South Africa.
Following the acquisition, Aramex B2C services, including international and domestic express shipping and its unique e-commerce business Shop and Ship (called Aramex Global Shopper in South Africa), will be made available across all PostNet locations in South Africa. This will further extend Aramex’s reach in Africa by giving PostNet customers full access to its client–focused, technology-driven solutions.
Hussein Hachem, Aramex CEO, said: “We are excited to further expand our global network through the acquisition of PostNet’s master franchise. 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. 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.”
Further commenting on the acquisition, Andy van der Velde, chief executive officer of Aramex South Africa, said: “Following the acquisition of Berco Express in 2011, this deal will further extend Aramex’s unique service proposition to so many more locations across South Africa, with customers now being able to pick up and drop off packages from across 287 locations … We continue 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.”
Chris Wheeler, Chief Executive Officer of PostNet, said: “We believe Aramex is the right partner for us to further expand PostNet’s presence in South Africa as well as across Africa. Our customers will now also be able to benefit from Aramex’s global network, breadth of shipping, and delivery options and its innovative, customer-focused technologies, whilst still being able to enjoy our services.”
Aramex first entered the South African market with the acquisition of Berco Express (now Aramex South Africa) in 2011, which also created the platform for its entry into the Southern African region. The acquisition of PostNet South Africa provides significant opportunities for Aramex to continue its regional expansion, taking advantage of increasing demand for logistics, delivery, and business solutions.