Qantas and Australia Post Buy Star Track Express
SYDNEY, 19 December 2003
Australia Post and Qantas said today they had been successful in their joint bid to acquire express road freight operator, Star Track Express for $750 million.
The companies said the purchase would be made through a 50:50 joint venture and funded from net cash reserves and undrawn credit facilities.
The Chief Executive Officer of Qantas, Geoff Dixon, and The Managing Director of Australia Post, Graeme John, said they were delighted to buy such an outstanding business.
"Star Track Express is a high quality operation that provides superior service levels and has achieved consistent revenue and profit growth. It also comes with an experienced management team that has a proven track record," Mr Dixon said.
"This acquisition is consistent with the Qantas strategy of growing its non-airline businesses.
"Star Track Express adds to the portfolio of freight businesses in which Qantas is involved, including Australian air Express, a domestic express freight business that has been successfully operated by Australia Post and Qantas for many years."
Graeme John said Qantas and Australia Post would operate Star Track Express as a separate joint venture to ensure its brand, management, operational focus and customer relationships are maintained.
"Our aim is to grow the business to business market for express logistics. The business potential, both in Australia and overseas, means that the market will provide plenty of scope for future opportunities," Mr John said.
The founder and owner of Star Track Express, Greg Poche, said he was extremely pleased that Qantas and Australia Post, two leading Australian companies, had acquired his business and would now take it forward and grow it further.
The current Chief Executive Officer of Star Track Express, Derek Lightfoot, and his management team will continue to run the business. Mr Lightfoot and Mr Poche will continue on the Board of Star Track Express.
Issued by Qantas Corporate Communication (3008)