Two of Australia’s largest independent third-party logistics providers have announced a merger that will create the country’s third-largest fulfilment operation by warehouse footprint.

Transaction Details

The merger combines:

Combined warehouse space: 850,000 sqm nationally
Total employees: Approximately 4,200
Distribution centres: 28 locations across all states
Transaction value: Estimated at $420 million

Strategic Rationale

The combined entity aims to:

Achieve national coverage without relying on partner networks
Invest in automation across the expanded facility base
Compete more effectively for enterprise contracts
Improve carrier negotiating leverage

Client Impact

Existing clients of both operators have been assured:

Service continuity through integration period
No immediate changes to account management
Potential benefits from expanded network reach
Technology platform decisions pending (12-month evaluation)

Market Reaction

Industry analysts view the consolidation as reflecting broader 3PL market maturation, with scale becoming increasingly important for:

Technology investment capability
Carrier rate negotiation
Enterprise client acquisition
Talent attraction and retention

Regulatory approval is expected by Q3 2025.