Half of TNLGroup goes to Five Star

By Chris Hutching

Friday 22nd March 2002

Five Star Distribution has bought half the shares in one of Nelson's oldest freighting companies, TNL Group.

The consideration for the shares is under wraps. TNL enjoys annual turnover of about $40 million, employs 250 people and operates 140 vehicles. The new enlarged group would operate more than 600 vehicles, TNL Group managing director Neil Reid said.

The shares acquired by Blue Star were owned by the estate of local businessman Garth Butler who died last year. He acquired the stake in 1988 as one of a group of investors who bought TNL Group from receivers after its parent company, Transpac Holdings went belly up after the 1987 sharemarket crash.

The collapse of Transpac dismayed many Nelson business people who considered it had been a viable company caught up in events. In hindsight it became apparent that Transpac paid inflated prices for assets that were subsequently picked up at a more realistic level by the group led by Mr Butler.

The original company, Transport (Nelson), was set up 1938 by (Sir) Jack Newman as a successor to coach and carrier operator Newman Bros, formed in 1879. Transport (Nelson) later became the freighting arm of Newmans until 1987 when it was sold into the ill-fated listing, Transpac Holdings.

Auckland-based Five Star Distribution - was formed about 20 years ago (TNL Freighting was a foundation shareholder). Blue Star's three key shareholders today are Hooker Pacific of New Plymouth, United Carriers of Whangerei and Provincial Freightlines of Thames.

TNL Group will continue to be chaired by Blenheim lawyer Peter Radich, accountant David Kenning, and TNL Group managing director Mr Reid. Alan Terris is taking a position on the board as a representative of Blue Star and he plans to move back to Nelson to live. He began his career in Nelson in 1980 with Newmans.

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