Benchmark International is pleased to announce the acquisition of the Fastway Couriers’ National Master (Fastway South Africa), Fastway Johannesburg, and Fastpost businesses by City Logistics (Pty) Ltd in partnership with Clearwater Capital (Pty) Ltd.
Fastway Couriers (“Fastway” or “the group”) was established in Napier, New Zealand, in 1983 and is the largest global courier franchise, with New Zealand, Australia, Ireland, Northern Ireland, and South Africa under National Master Franchise agreements. Operations in South Africa began in 2008 when Isicabucabu Franchising (Pty) Ltd, trading as Fastway Couriers South Africa, acquired the National Master Franchise for South Africa. There are currently 16 Regional Franchises across the country and over 300 local Courier Franchises. This established delivery network makes Fastway cost-effective, reliable, and the ideal courier choice for any business moving small parcels. Their timetabled courier delivery service is supported by innovative technology and online parcel track and trace facilities.
Speaking on behalf of Fastway Couriers South Africa, Richard Robinson said. "this is a very exciting time for the Fastway Group. The last-mile delivery landscape is rapidly changing, and Fastway, together with the City Logistics Group, will now be ideally positioned to offer a wider and more flexible range of services to a larger customer segment together with end-to-end solutions. I’m confident that the Fastway Group that we conceived, launched, and built is going into good hands." City Logistics (Pty) Ltd is a top Southern African logistics service provider that tailors world-class distribution, linehaul, and warehousing solutions for retailers.
City Logistics CEO Ryan Gaines said the acquisition would create one of the largest turnkey logistics providers for the fashion, retail and eCommerce sectors. “The combined businesses of City Logistics and Fastway offer one of the most affordable delivery options in South Africa for small-to-medium businesses and corporates,” Gaines stated.
City Logistics said the acquisition would allow it to provide existing and future customers with a valuable small parcel solution. "This is a strategic investment, giving us the opportunity to increase services offered to our existing clients, to serve a new customer base, and to provide solutions for a market that requires options to reach their end customers," said Gaines. Among the two companies' major customers are the Mr. Price Group, The Foschini Group, and Home Choice.
Clearwater Capital is a private equity management company founded in 2004 on the principles of marrying strategic and entrepreneurial insight with operational excellence to generate superior returns.
Clearwater Capital was born out of printing and packaging family business that started from humble beginnings and is now almost 100 years old. It has had four generations of the Mehta family work and led the business through the decades.
Commenting on the transaction, Keval Mehta from Clearwater Capital added: "We are very excited to invest in a high-growth business that provides a value offering to the market. As commerce migrates more towards digital platforms, we believe Fastway is very well positioned to provide a fast and cost-effective last mile fulfillment solution."
Tiaan Smit, representing Benchmark International’s South African office, added, “We are pleased to see Fastway find a buyer that can build on the success the business has achieved to date in what is considered to be the fastest growing segment of the express logistics market. We are excited for all parties and wish them success in their transition”.
Europe: Michael Lawrie at +44 (0) 161 359 4400 / Enquiries@BenchmarkIntl.com
Americas: Sam Smoot at +1 (813) 898 2350 / Smoot@BenchmarkIntl.com
Africa: Anthony McCardle at +27 21 300 2055 / McCardle@BenchmarkIntl.com
ABOUT BENCHMARK INTERNATIONAL
Benchmark International is a global M&A firm that provides business owners with creative, value-maximizing solutions for growing and exiting their businesses. Benchmark International has handled over $8.25 billion in transaction value across various industries from offices across the world. With decades of M&A experience, Benchmark International’s transaction teams have assisted business owners with achieving their objectives and ensuring the continued growth of their businesses. The firm has also been named the Investment Banking Firm of the Year by The M&A Advisor and the #1 Sell-side, Privately Owned M&A Advisor in the World by Pitchbook’s Global League Tables.