Hellaby buys auto parts, truck servicing businesses for 'less than $25M'

Friday 22nd May 2015

Hellaby Holdings, the diversified investment group, said it acquired two businesses to strengthen its auto parts and truck servicing operations, for an all up cost of less than $25 million.

The Auckland based company said its New Zealand Trucks subsidiary acquired Diesel & Machinery Services, a Waikato based truck maintenance, repair and engineering services company, on April 30. It has also agreed to buy Melbourne based JAS Oceania, an Australian distributor of auto electrical, automotive air conditioning and lighting components. JAS will become part of Hellaby's Automotive division when that deal settles on June 1.

Managing director John Williamson, who plans to step down in October, said the two acquisitions would be funded through existing group debt facilities. They have combined annual sales of about $50 million and will add about $5 million to the company's annualised earnings before interest, tax, depreciation and amortisation.

The acquisitions come after the company acquired auto electrical parts wholesaler Dasko and truck servicing firm NZ Trucks in early 2014. and Williamson said the new businesses will strengthen its existing operations.

"Both these businesses are strategically significant and complementary to existing subsidiaries," he said. JAS had "a highly complementary product range to Hellaby’s other Australian automotive businesses, Federal Batteries and Diesel Distributors" and its 19 branch network would extend Hellaby’s Australian market coverage.

Diesel & Machinery would "significantly strengthen New Zealand Trucks’ ability to service customers in the upper North Island," he said. Vendors in both businesses would stay on under Hellaby ownership.

Hellaby owns 15 industrial, distribution and retail businesses, ranging from footwear stores to oil and gas services.

In February, the company posted a 36 percent gain in first half profit and said it was n track to lift full year earnings.

Hellaby shares rose 0.3 percent to $3.01 and have fallen 4.8 percent since the beginning of the year.

BusinessDesk.co.nz

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