HomeNEWSFreightways keeps it cool with ProducePronto acquisition

Freightways keeps it cool with ProducePronto acquisition

This week Feightways announced a $10 million purchase acquisition of Kiwi-owned ProducePronto, which operates a fleet of 20 tri-temperature zoned vehicles delivering fresh and frozen food around the country.

The move complements the listed company’s successful acquisition of Big Chill last year, building out a same-day and overnight temperature-controlled delivery niche in its express parcel (EP) division.

Freightways CEO Mark Troughear says ProducePronto will integrate into the wider Big Chill business and allow the EP division to diversify further into the fast-growing fast food (QSR), fresh, and convenience food category.

“The ProducePronto business buys, stores, and moves product in an incredibly efficient and attractive model that outpaces its competition and means same-day delivery is guaranteed for customers,” he says.

“Combining this with Big Chill’s infrastructure means we further corner the express chilled and frozen niche, whilst benefiting from the economies of scale the integration offers.”

The ProducePronto business achieved revenue of $16 million for FY21, with founders Jason Brennan and Josh Bartley-Smith staying on to lead the business alongside their 41 staff when Freightways takes ownership on 1 November 2021. The two entrepreneurs launched the family-run business with office fresh produce deliveries in 2011, before branching into the convenience market in 2014.

Brennan says the acquisition by Freightways is an exciting development for the company.

“We’re proud of everything we have achieved over the last decade and how rapidly the business has developed since the early days – from office deliveries in Auckland to supplying fresh and frozen products to most of New Zealand’s towns and cities.

“Becoming part of Big Chill and Freightways is a huge step and we’re thrilled to join a business that shares our culture of hard work, recognition, and delivering on our promises to customers.”

Freightways expects to take ownership of ProducePronto on 1 November 2021.

ProducePronto by the numbers

•    $10m – Purchase price

•    $4m – Possible earn-out over 3 years for PP owners

•    $16m – Actual revenue for FY21 with growth runway

•    1,000 – Business customers across Auckland receiving fruit, milk, and lunch deliveries

•    240 – nationwide convenience store deliveries every day receiving fresh and frozen food.

•    41 – Staff including 20 drivers

•    3 – Facilities in Auckland, Wellington, and Christchurch

•    365 – Days per year operation

•    240 – Service station customers

•    41 – Staff including 20 drivers

•    3 – Facilities in Auckland, Wellington, and Christchurch

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