Thursday 4th October 2018
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Trucking operator TIL Logistics is acquiring Specialised Lifting and Transport Group to increase its capacity to move large loads and better compete with Australian rivals.
The company, which already operates Multi-Trans Heavyhaul, has agreed to pay $19 million in cash and shares for Specialised Lifting and Transport, which comprises Tranzcarr Heavy Haulage, Machinery Movers and Huge Movers.
TIL chief executive Alan Pearson said the purchase offers meaningful synergies and expands the group’s network and the range of services it can offer customers. It will also make it more competitive against Australian firms quoting for work here.
“Heavy haulage is very specialised work, both in terms of equipment and people. The acquired businesses are currently generating around $15 million in annualised revenues and we expect the acquisition to be immediately earnings per share accretive,” he said.
“The New Zealand freight industry remains highly fragmented and TIL is well positioned to lead future industry consolidation. We have a very disciplined approach to acquisitions, which must meet strict criteria and demonstrate the ability to add considerable long term value.”
New Plymouth-based TIL has more than 900 trucks and operates depots and warehouses in 60 locations. Its Pacific fuel business is one of the country’s largest tanker fleets, while its general freight business includes major brands like TNL, Hooker Pacific and Roadstar.
TIL said Tranzcarr specialises in moving heavy and over-size loads here and overseas and will complement its existing Multi-Trans operation. Huge Movers is an advisory service on moving large items.
Machinery Movers specialises in extraction, transportation and installation of heavy plant and operates the largest and most diverse fleet of custom lifting gear for the construction industry. That is a new area of business for TIL.
TIL is paying $15 million in cash for the businesses and will issue $4 million of shares at $1.50 for the balance. The shares closed at $1.66 yesterday, down 17 percent so far this year.
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