Robinson acquires Airpak Express
Published:Wednesday | January 12, 2011 | 12:00 AM
Sabrina Gordon, Business Reporter
Local private equity firm Norbrook Capital Management (NCM) has acquired Airpak Express Limited, its third asset purchase in less than two years, and a move which the company says is the final step in building out a full-service logistics operation.
"We saw an opportunity to create a company that solved the logistics needs of a diverse base of businesses in Jamaica," said Khary Robinson, principal of NCM.
"Now a car rental company located in Negril can use our payment platform to pay for a spare part available in Kingston and have that item delivered to them same day through our courier platform," he said in a press release on Monday.
But Robinson was tight-lipped on the acquisition cost of Airpak, citing a confidentiality agreement with seller Chris Read.
Norbrook's 32.489 million shareholdings in the company is held through Airways International Limited, while Chris and Denise Read retain 1,000 shares each.
Early last year, NCM acquired local Internet shopping firm MailPac Services, and later Compact car rental.
Now NCM says its logistics division offers a complete range of services which includes e-commerce, supply, and sea freight logistics through MailPac.
Same-day delivery
Local same-day delivery can now be obtained through Airpak, while even faster domestic deliveries are offered through its sister company, Swoop Couriers.
As an agent for Amerijet, NCM Logistics also handles international air freight services; and international document and package logistics through UPS.
Robinson says with the recent acquisition, NCM will be in a better position to handle the growing demand for courier services but he refused to be drawn on the revenue potential.
Airpak Express started trading in 1992 as a division of Airways International Limited, then transformed into a limited liability company in 1995.
Through a fleet of four aircraft, 22 vehicles, eight motorcycles and one lift gate truck as posted on the company's website, it offers same day and overnight deliveries across its seven locations.
But to get more efficiency out of its acquisition, Robinson says he intends to add more AirPak locations, introduce new technology, do a revision of the brand and upgrade the fleet.
"Currently, the fleet is made up of approximately 30 or so vehicles, including cars, van, motorcycle and airplanes. We expect to double our fleet by the end of 2011," he said.
Four new locations will be added to the current eight, moving the total to 12.
The head office, previously housed at Tinson Pen aerodrome near the Kingston waterfront, will also be relocated uptown to NCM's Old Hope Road headquarters.
Presently, with a weight limitation of no less than 32 kilogrammes or 70 pounds per package, Airpak charges a fee of J$3,865.90.
Delivery rates will be revised downward, but again Robinson declined to say by how much.
"We will be doing an advertisement to announce new rates," he said.
No material management change is expected according to Robinson.
Airpak founder Chris Read will assume the role of executive adviser to Norbrook's logistics division.
Among Norbrook's other investments are: International Data Processors, an outsourcing firm focused on providing office solutions for the financial services industry; and ValuCard, a privately owned card-processing network for debit, credit and stored value cards.
In March 2009, Norbrook also launched a prepaid student card service in six schools, Ardenne High, Campion College, St Andrew High, Jamaica College, Mona Prep and American International School of Kingston, which eliminated the need for cash transactions on their campuses.