A national freight operator in Victoria acquired a leading logistics company in Queensland for $38 million, leveraging favorable interest rates to enhance the deal structure.

Information on the Target

In late 2024, a prominent freight and warehousing operator headquartered in Victoria executed the acquisition of a well-established logistics company located in Queensland for approximately $38 million. This deal, facilitated by Lloyds Business Brokers, exemplifies how the evolving interest rate environment has reshaped transaction structures in the Australian M&A landscape.

The buyer, supported by a mid-market private equity firm, benefited from a blended interest rate facility of just under 5.2%, marking a significant reduction compared to previous years. This favorable financing arrangement enabled the acquisition to be predominantly funded through debt, covering over 70% of the transaction costs.

Industry Overview in Australia

The Australian mergers and acquisitions market is currently undergoing a transformative phase due to significant changes in the macroeconomic landscape. The Reserve Bank of Australia (RBA) has embarked on a cycle of interest rate reductions af