Home / ASX Share Market News / Freightways Group to acquire VT Freight Express in $71m deal

Freightways Group to acquire VT Freight Express in $71m deal

Freightways Group will acquire VT Freight Express for $71m, expanding its Australian express delivery operations and boosting earnings per share.

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Laura Stewart
Author bio Laura Stewart is a Finance Editor at The Motley Fool, where she covers Australian and international equity markets. She joined the company in 2022, following a career transition from legal advisory work in Southeast Asia into the investment industry. Prior to her current editorial role, Laura spent three years as an Equity Analyst and Writer, producing investment research across the ASX, NYSE, and NASDAQ. Her coverage included small-cap growth companies, thematic investment ideas, and high-quality U.S.-listed businesses. Laura holds a Master of Applied Finance and brings additional expertise in accounting, taxation, and estate and wealth planning from her postgraduate studies. She also has a background in law and communications, which supports her analytical and reporting work in financial markets. Outside of work, she enjoys spending time in the Adelaide Hills with her flock of sheep. Education Laura holds a Bachelor of Laws, a Bachelor of Communication (Journalism), and a Bachelor of Commerce with majors in Accounting and Corporate Finance. In 2025, she completed a Master of Applied Finance at the University of Adelaide, receiving postgraduate awards in Accounting Concepts & Methods, Ethical Principles in Accounting & Finance, Real Estate Valuation & Investment, and Tax, Estate & Wealth Planning. Social media LinkedIn FYI – I am taking a break from social media at the moment, so this account isn’t active at the moment, but I will let you know when I rejoin. Favorite investment quote "Compound interest is the eighth wonder of the world. He who understands it, earns it... he who doesn't... pays it." — Albert Einstein
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Key points
  • Freightways Group announced the acquisition of VT Freight Express for A$71 million, expected to boost earnings per share by 6% in the first year post-acquisition.
  • VT Freight Express, operating across Australia with a revenue of A$77 million, complements Freightways’ B2B offerings and will leverage an asset-light model.
  • Set to complete on or after 30 January 2026, the acquisition supports Freightways’ multi-brand strategy for enhanced market share and continued growth opportunities in Australia.

The Freightways Group Ltd (ASX: FRW) share price is in focus after the company announced it will acquire VT Freight Express in a deal worth A$71 million. VT Freight Express generated A$77 million in revenue over the past year, with the transaction expected to be 6% earnings per share accretive from year one.

two businessmen shake hands in a close up mid-level shot with other businesspeople looking on approvingly in the background.

Image source: Getty Images

What did Freightways Group report?

  • Acquisition of VT Freight Express (VTFE) for A$71 million (subject to adjustments)
  • VTFE revenue of A$77 million in the 12 months to October 2025
  • Deal expected to lift Freightways' earnings per share by 6% in the first year
  • VTFE operates across all Australian states and territories, with 87 contractors and 49 staff
  • Acquisition funded through existing and new bank debt facilities

What else do investors need to know?

The acquisition gives Freightways a stronger foothold in Australia's express delivery market, particularly in the business-to-business (B2B) segment. VTFE B2B services cover many industries, from building and healthcare to retail and plumbing, and will complement Allied Express, which focuses on B2C deliveries.

VTFE has operated with an asset-light model since its founding in 2010, using a contractor fleet and leased facilities – a model familiar to Freightways and its existing operations. Following completion, VTFE will continue under its own leadership while sharing resources where it makes sense.

What's next for Freightways Group?

Completion of the VTFE acquisition is expected on or after 30 January 2026, subject to customary conditions. This deal aligns with Freightways' multi-brand strategy, aiming to grow its market share in Australia and open more B2B growth opportunities.

The company also intends to maintain a focus on organic growth and further M&A activity, leveraging its enhanced market position in the competitive Australian express delivery sector.

Freightways Group share price snapshot

Over the past 12 months, Freightways shares have risen 28%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 3% over the same period.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

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