Industry News

Is TGE planning an acquisition?

Transport and logistics company, Team Global Express (TGE), might be preparing to take over a major rival.

This follows Allegro Funds’ ownership of the now rebranded TGE and the company’s subsequent refinancing deal with the Commonwealth Bank of Australia.

The leadership team at TGE, according to Fairfax Media, is reported to be gearing up to make an offer for Direct Couriers Group. This would involve assembling a team for the auction and sending proposal requests to investment banks.

The Direct Couriers business provides courier, warehousing and logistics services throughout Australia and New Zealand. It reported $210 million in revenue for the year to 30 June which was up $155 million in FY2021.

It has a fleet mix of station wagons, utility vehicles, vans, curtainsiders, semi-trailers and flat top heavy vehicles.

TGE has approx. 6.8 per cent of Australia’s courier pick up and delivery services market which, according to Fairfax Media, trails DHL Express (9.8 per cent).

Demand for final mile transportation and related services continues to increase, following trends in e-commerce supported by recent commentary from national courier, Australia Post.

This courier market is estimated to be worth approx. $10.6 billion a year, according to IBIS World, and has grown 8.0 per cent a year in the past five years due to spikes in online shopping.

Earlier this year, Direct Couriers expanded its fleet.

The post Is TGE planning an acquisition? appeared first on Trailer Magazine.

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