Direct Couriers has attracted Anacacia Capital onto its share register. Direct Couriers are a fast-growing provider of courier and logistics services in Australia and New Zealand.
This transaction enables all 6 Direct Couriers’ branches to roll into one group with an enhanced seamless service to customers. The combined group will have almost 1,000 sub-contractor vehicles operating in Sydney, Melbourne, Brisbane, Perth, Adelaide and Auckland. All senior executives will continue to run the company in their current roles and remain as key shareholders. Anacacia will add non-executive directors to strengthen the group board.
Direct are also announcing today the acquisition of Andrew’s Refrigerated Transport providing refrigerated transportation services across the eastern seaboard and expanding into their national footprint under the brand Direct Cold. This will enable the group to offer temperature-controlled transport solutions for customers in industries such as pharmaceutical, medical and food.
Barry Reichman, Direct Couriers Group CEO, commented that “Anacacia have a proven track record and a wealth of experience and success in supporting the expansion and growth of companies like Direct Couriers, and I believe they are the right partner to help us achieve our growth aspirations”.
Mr Reichman is optimistic that the business can achieve additional geographic and service line expansion supporting clients in the fragmented transport space. He particularly noted how the group’s state of the art tracking and associated integrated technology, provide a solid growth platform in a high compliance and service-oriented industry.
Australian Investment Council 2019 Firm of the Year, Anacacia Capital, has capped an active year of investment to join forces with the transport and logistics company.
While the terms of the transaction were not disclosed, Anacacia manages over $600 million in capital and typically invests $15million to $60million per transaction in businesses usually with annual revenues of $20million to $300million.
Jeremy Samuel, Anacacia Managing Director, added that “Anacacia have been very impressed by client feedback on Direct Couriers’ customer service and we are looking forward to working with an aligned management team to continue to grow the business”.
This transaction followed several months of exclusive due diligence.
About Direct Couriers: With ~4,500 customers and a fleet of more than 1,000 vehicles Australia wide, a dedicated customer service team in each state, and a management team that owns the business, Direct Couriers aims to bring market leading solutions for clients’ transport delivery requirements.
About Anacacia Capital: Anacacia Capital invests into leading small medium enterprises (SMEs), partnering with founders and management teams of growing business to help accelerate their strategies. They have won numerous awards for supporting growing SMEs including the 2019 Australian Investment Council Firm of the Year and Best Small Cap Investment of the Year. They also manage the highly successful Wattle Fund that invests into leading listed SMEs.
Read more coverage at The AFR: PE firm Anacacia backs antipodean courier business