Freightways’ $71M VTFE Buy Raises Questions on Integration and Market Impact
Freightways Group Limited is set to acquire VT Freight Express for A$71 million, marking a strategic expansion into Australia's B2B express delivery market. The acquisition is expected to boost earnings and complement Freightways’ existing B2C operations.
- A$71 million acquisition of VT Freight Express
- VTFE generated A$77 million revenue in past 12 months
- Transaction expected to be 6% EPS accretive from year one
- VTFE’s B2B focus complements Freightways’ B2C Allied Express
- Deal funded through existing and new bank debt facilities
Strategic Expansion into Australian B2B Market
Freightways Group Limited has announced a significant acquisition that will deepen its footprint in the Australian express delivery sector. The company has agreed to purchase VT Freight Express Pty Ltd (VTFE), a Victoria-based business specialising in express parcel and palletised freight delivery to a broad range of industries including building, healthcare, retail, and plumbing.
Founded in 2010, VTFE has built a strong track record of growth and profitability, operating an asset-light model that leverages a contractor fleet and leased facilities. This approach aligns closely with Freightways’ existing operational style, particularly its Allied Express brand, which focuses on business-to-consumer (B2C) deliveries. VTFE’s business-to-business (B2B) niche offers a complementary service, providing Freightways with a valuable entry point into a growing segment of the Australian logistics market.
Financial and Operational Highlights
The acquisition price is set at A$71 million, subject to customary completion adjustments, with VTFE having recorded A$77 million in revenue over the 12 months to October 2025. Freightways expects the deal to be immediately accretive to earnings per share by approximately 6% in the first year, signalling confidence in the acquisition’s value creation potential.
VTFE currently operates with 87 contractors and 49 staff, servicing over 350 clients across all Australian states and territories. This broad geographic reach and established client base provide Freightways with a solid platform to build market share both organically and through potential future acquisitions.
Integration and Growth Prospects
Consistent with Freightways’ multi-brand strategy, VTFE will maintain its own leadership and operational focus, while sharing resources with Freightways where synergies exist. This approach aims to preserve VTFE’s niche expertise and customer relationships while leveraging Freightways’ core capabilities in express pickup, processing, and delivery.
The acquisition not only strengthens Freightways’ presence in Australia but also diversifies its revenue streams by balancing its B2C and B2B offerings. The company anticipates that this strategic move will enable it to capture new growth opportunities in the Australian market, which remains competitive and dynamic.
Next Steps and Market Implications
Completion of the acquisition is expected on or after 30 January 2026, subject to customary conditions precedent. The transaction will be funded through a combination of existing and new bank debt facilities, reflecting Freightways’ confidence in its balance sheet and future cash flows.
Advisory support for the deal included KPMG for financial, tax, climate, and ESG due diligence, Gilbert + Tobin for legal advice, and Balfour Green for M&A advisory services. VTFE was advised by Wisewould Mahoney.
Bottom Line?
Freightways’ acquisition of VT Freight Express positions it to accelerate growth in Australia’s B2B express delivery market, but integration execution will be key to unlocking full value.
Questions in the middle?
- How will Freightways integrate VTFE’s operations without disrupting its niche focus?
- What are the potential competitive responses from other Australian logistics providers?
- Could this acquisition signal further M&A activity by Freightways in the Australian market?
