Last mile provider FAST Group’s post-merger meltdown: PE-backer freezes fund amid financial red flags

1 week ago 9

FreightWaves Staff

Sat, January 10, 2026 astatine 10:39 AM CST 4 min read

In the fast-paced satellite of e-commerce logistics, mergers are often hailed arsenic game-changers, promising synergies, expanded networks, and economies of scale. But for FAST Group—the entity calved from the August 2025 merger of Australian parcel transportation steadfast Sendle, U.S.-based FirstMile, and ACI Logistix—the honeymoon was short-lived. Just months aft the woody closed, Sydney-based Federation Asset Management (Federation AM), a cardinal capitalist successful the venture, froze redemptions successful its $100 cardinal Federation Alternatives Investment Fund II, citing a situation astatine FAST Group that has exposed owed diligence lapses, fiscal discrepancies, and the specter of bankruptcy.

The fallout underscores broader risks successful the freight and logistics sector, wherever accelerated consolidation driven by e-commerce request tin disguise underlying operational and fiscal vulnerabilities. As freight volumes fluctuate amid economical uncertainty and proviso concatenation disruptions, this lawsuit serves arsenic a cautionary communicative for investors and operators alike.

The Merger: A Bold Bet connected E-Commerce Shipping

FAST Group was formed connected August 7, 2025, done the strategical operation of 3 logistics players, each bringing complementary strengths to the table. Headquartered successful California, the caller holding institution aimed to make a “dynamic ecosystem” for e-commerce shipping, serving everything from tiny businesses to endeavor clients crossed the U.S., Australia, Canada, India, and the Philippines. The institution was a person successful past mile transportation services and partnered with companies similar DoorDash to implicit delivery.

Sendle: Founded successful Australia, Sendle specialized successful affordable, carbon-neutral parcel transportation for tiny e-commerce sellers. Backed by investors including Federation AM, Touch Ventures, Rampersand, and King River Capital, it had raised implicit $100 cardinal successful backing rounds since 2019, with estimated yearly revenues astir $32.5 cardinal pre-merger.
FirstMile: A Salt Lake City-based steadfast focused connected mid-market shipping optimization, with nationalist parcel pickup infrastructure and revenues pegged astatine astir $75 million.
ACI Logistix: The Long Beach, California seasoned with implicit 60 years successful nationalist parcel logistics, automation, and direct-to-consumer delivery, reporting revenues betwixt $23.6 cardinal and $100 million, depending connected sources.

The merger was positioned arsenic a win-win: Sendle’s tech level and planetary scope would integrate with FirstMile’s pickup networks and ACI’s sortation facilities, offering customers expanded services without disrupting existing brands. Keith Somers, erstwhile CEO of ACI Logistix, took the helm arsenic FAST Group’s CEO, with a committee drafting from each 3 entities. Federation AM, which had been a large stakeholder successful Sendle, rolled its concern into a number presumption successful the caller radical and provided backing for the venture.