The Freightways Group Ltd (ASX: FRW) share price is in focus after the company announced it will acquire VT Freight Express in a deal worth A$71 million. VT Freight Express generated A$77 million in revenue over the past year, with the transaction expected to be 6% earnings per share accretive from year one.
What did Freightways Group report?
- Acquisition of VT Freight Express (VTFE) for A$71 million (subject to adjustments)
- VTFE revenue of A$77 million in the 12 months to October 2025
- Deal expected to lift Freightways’ earnings per share by 6% in the first year
- VTFE operates across all Australian states and territories, with 87 contractors and 49 staff
- Acquisition funded through existing and new bank debt facilities
What else do investors need to know?
The acquisition gives Freightways a stronger foothold in Australia’s express delivery market, particularly in the business-to-business (B2B) segment. VTFE B2B services cover many industries, from building and healthcare to retail and plumbing, and will complement Allied Express, which focuses on B2C deliveries.
VTFE has operated with an asset-light model since its founding in 2010, using a contractor fleet and leased facilities â a model familiar to Freightways and its existing operations. Following completion, VTFE will continue under its own leadership while sharing resources where it makes sense.
What’s next for Freightways Group?
Completion of the VTFE acquisition is expected on or after 30 January 2026, subject to customary conditions. This deal aligns with Freightways’ multi-brand strategy, aiming to grow its market share in Australia and open more B2B growth opportunities.
The company also intends to maintain a focus on organic growth and further M&A activity, leveraging its enhanced market position in the competitive Australian express delivery sector.
Freightways Group share price snapshot
Over the past 12 months, Freightways shares have risen 28%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 3% over the same period.
The post Freightways Group to acquire VT Freight Express in $71m deal appeared first on The Motley Fool Australia.
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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.
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