Gadens advises Silk Logistics Holdings Limited on purchase of Secon Freight

The transaction involves a $30m upfront cash payment and $5m in Silk shares

Gadens advises Silk Logistics Holdings Limited on purchase of Secon Freight

Gadens has advised ASX-listed Silk Logistics Holdings Limited on its acquisition of Secon Freight Logistics Pty. Ltd for $35m.

According to a 1 September ASX announcement made by Silk, it obtained 100% of Secon Freight’s shares through a $30m upfront cash payment and the issuance of $5m in Silk shares. The upfront cash payment will be supported by Silk’s club acquisition facility with NAB and Rabobank, according to Prime Mover Magazine.

The share issue price was calculated based on a 30-day VWAP (volume weighted average price) before the execution date. A total of 2,502,628 fully paid ordinary shares were issued which will be held in escrow until 30 June 2024.

The transaction, which was finalised on 31 August, also involves a deferred earn-out component that will be payable in cash upon completion of certain EBITDA targets for each of FY24 and FY25. Prime Mover Magazine noted that the completion of the deal was also subject to customary conditions like consents to change of control from major customers and landlords.

Silk CEO Brendan Boyd said in a statement published by Prime Mover Magazine that the acquisition scales up the company’s footprint in Victoria and “provides Silk with a significant platform in national bulk logistics, unlocking demand from our existing blue chip customer base as well as other potential cross-selling opportunities.”     

The Gadens team that worked on this deal was led by corporate partners Jol Rogers and Melissa Phillips, with support from banking and finance partner Elliot Raleigh, senior associate Isabella Barnes, and corporate advisory lawyer Daphne Chiang.

Silk is a national port logistics, warehousing, and distribution services provider in Australia. Secon specialises in container cartage, warehousing, distribution, and bulk services.

Recent articles & video

Thomson Geer partner: Bruce Lehrmann suit teaches a lesson about bringing unmeritorious claims

Australian Ethical picks up Altius Asset Management with KWM's guidance

Griffith Hack welcomes patent attorney, patent associate to Perth team

Independent review calls for more investment in Aboriginal and Torres Strait Islander Legal Services

European Union officially approves landmark AI legislation

UK judge predicts artificial intelligence will transform role of expert witnesses

Most Read Articles

Thomson Geer partner on the biggest impact of the Bruce Lehrmann defamation ruling

Pearce IP's AU litigation head shares the most important lesson she learned from her old job

G+T guides Mitsubishi UFJ Trust and Banking on $2.1bn pickup of Link Group

HWL Ebsworth reveals new leadership and management structure