Bunbury’s Giacci family has sold its trucking and bulk haulage business Giacci Group to listed company Qube Logistics for $119 million.
The privately-owned company confirmed the sale this afternoon, with the acquisition expected to be completed by the end of next month.
The family will be paid about $100 million next month, when the deal settles, with the balance deferred for two years and subject to the company’s future earnings.
The agreement will also see Qube assume net debt of about $26.6 million.
The Giacci operation began with one truck in 1959 and has grown to become a business employing over 350 people managing more than 17 million tonnes of material per year.
Its core business was built around Western Australia’s mining industry, specifically in transporting minerals from the state’s mines to ports for exporting.
Its focus grew to taking full responsibility of the entire ‘closed loop supply chain’ encompassing road, rail, port and shipping of materials.
Co-founder and managing director Peter Giacci has been with the company since it was formally founded in 1968, and will remain in the role for at least the next two years.
“I look forward to working with the Qube management team to continue to offer an enhanced range of high quality, efficient and competitive services to our existing and potential client base,” Mr Giacci said in a statement.
ASX-listed Qube has said it will fund the acquisition by issuing $20 million of new shares to the vendors (the Giacci family), at a price of $1.47 per share, and make up the balance of the purchase price through its available cash and debt facilities.
Qube managing director Maurice James said the acquisition would strengthen its logistics capability and allow the company to expand the range of services it provides.
“The acquisition will enable Qube to provide a complete mine to port logistics solution covering transport, stockpile management and stevedoring,” Mr James said.
Qube was initially listed in the ASX as an investment fund in 2007, but under the leadership of chairman Chris Corrigan, evolved into the logistics company it is today in September 2011.
In the 12 months to June 2011 the company generated revenue of over $800 million. It employs more than 3,700 people.