McAleese buys WA Freight Group
Transport company McAleese has announced the purchase of Forrestfield logistics company, WA Freight Group, in a share sale and purchase agreement worth $15.4 million.
The company, which owns a fleet of prime movers and trailers, hauls freight across the country for retailers, print suppliers, food and beverage companies, light manufacturers and the oil and gas and mining sectors.
It employs 250 people and has annual revenue of about $90 million WA Freight Group had an established and diverse customer base, with well located facilities and experienced personnel.
"We plan on leveraging the capabilities of this business further via organic opportunities and future complementary acquisitions in the Australian freight logistics sector," he said.
McAleese expects to invest an additional $5-7 million in the company to upgrade assets and better position the business for growth.
It said it expected to retain the existing management team.
McAleese said the acquisition would be funded using existing debt facilities.
The company said the acquisition was not expected to have a material impact on earnings in full-year 2014, but would be earnings per share accretive in its first year.
WA Freight Group was founded in 1991 as WA Frieghtlines before merging with Jolly's Transport and Jetstyle Express in 2004.
Shares in McAleese - which also issued a profit warning this morning based on unexpectedly weak third quarter revenue and earnings figures, were off 7.5 cents - or 14.56 per cent, to 44 cents at 12.45pm.
