Australia Post buys out AGS to boost global interests

Australia Post has bought out Aramex Global Solutions (AGS) from its founding partner, Middle East express and logistics company Aramex. AGS was originally co-owned by the postal operator and Aramex.

AGS provides end-to-end cross-border logistics solutions to a number of high end e-commerce merchants.

The deal is worth US $20 million and covers the 60% of AGS Australia Post doesn’t currently own.

Since its founding in 2016, AGS has seen strong growth, with revenues up more than 60% since 2016 – in 2018 it had revenues of AUD $138 million.

Australia Post’s exclusive delivery of parcels for AGS in FY18 generated A$40 million of revenue.

AGS enables Australian consumers to shop online globally, connecting international retailers directly with Australia Post’s last-mile delivery and customs clearance capabilities. In addition to delivering significant parcel volumes inbound to Australia, AGS has an established presence in key global eCommerce trade lanes, including Asia, the UK, Europe and the US, providing a valuable platform for continued expansion.

Annette Carey, Executive General Manager, International Services, said “As a wholly-owned subsidiary of Australia Post, AGS provides an established platform to accelerate our international growth strategy.”

“Combining our postal capabilities with AGS’s bespoke eCommerce capabilities enables Australia Post to engage directly with international retailers, providing unique customer solutions to capture strong growth in cross-border eCommerce markets.

“Today’s agreement with Aramex reflects changes to the strategic direction of both organisations, including Australia Post’s commitment to positioning itself as a global provider of cross-border eCommerce.”

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