DP World Australia Acquires Silk Logistics for $114.23 Million
Seeking to expand its presence in Asia Pacific (APAC) region, DP World Australia, a subsidiary of DP World, has on announces it has entered into a binding Scheme Implementation Deed for the acquisition of 100% of the issued share capital of Silk Logistics Holdings Limited via a scheme of arrangement with a cash offer of $1.4 per share. The transaction values the equity of Silk Logistics at approximately $114.23 million.
APAC region is viewed as a big growth market and expected to account for 40% of global revenue for contract logistics services by 2027.
According to reports, the region’s logistics market is poised for significant growth, expected to grow at a compound annual growth rate (CAGR) of 5.25% between 2022 and 2027. Singapore, in particular, has solidified its position as a critical logistics hub thanks to its world-class infrastructure and strategic geographic placement.
DP World Australia is a leading global transport and logistics company, handling approximately 10% of global containerised trade. DP World Australia operates four container terminals and three container parks — at Brisbane, Sydney, Melbourne and Fremantle — as well as inland distribution centres and warehouses.
This transaction is subject to shareholder approval of Silk Logistics and standard closing conditions, including necessary regulatory approvals, and is expected to complete in the first half of 2025, AD Ports said in a statement on Monday.
Silk Logistics is a comprehensive port-to-door logistics services provider which operates 21 logistics hubs and 25 warehousing sites across five Australian states. Silk Logistics partners with some of the world’s leading brands providing efficient and cost-effective services to a national customer base.
Two Business Segments
The Group operates two main business segments:
Port Logistics: Seamless wharf cartage services between Australia’s major ports and,
Contract Logistics: Warehousing and multimodal distribution solutions to support complex supply chain needs.
Sultan Ahmed bin Sulayem, Group Chairman and CEO, DP World, said that the acquisition of Silk Logistics marks a significant step forward in strengthening their integrated logistics capabilities and expanding service offerings.
He said that this strategic move reinforces our commitment to providing seamless, end-to-end customised solutions for our customers, while delivering sustainable value for all our stakeholders.
Glen Hilton, CEO & Managing Director, Asia Pacific, DP World, said that this acquisition aligns with their strategy to deliver complimentary logistics solutions for a broad customer base across Oceania.
This acquisition positions DP World Australia to meet growing demand for comprehensive supply chain solutions, as the integration of Silk Logistics into its portfolio will allow DP World to offer end-to-end service across a wider range of logistics needs.
By adding Silk’s assets and operational expertise to its network, DP World Australia can support a broader spectrum of logistical demands for its customers, further cementing its standing in the region’s competitive logistics market.
