17/06/2009 - 15:06

Coote Industrial to offload subsidiary

17/06/2009 - 15:06

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Coote Industrial plans to sell its subsidiary, South Spur Logistics, in a bid to simplify its business model following a number of acquisitions and efforts to reduce its debt burden.

Coote Industrial plans to sell its subsidiary, South Spur Logistics, in a bid to simplify its business model following a number of acquisitions and efforts to reduce its debt burden.

The company today said it had appointed Sydney-based BurnVoir Corporate Finance to assist with the proposed sale of South Spur Logistics, an integrated rail, road and port logistics operator that was formed through the merger of South Spur Rail Services and Coote Logistics.

Since Coote Industrial listed in 2006, it has made a number of acquisitions resulting in the group operating 23 businesses.

However, since the December quarter last year, Coote has "undertaken to progressively develop a simplified business model focussed on delivering niche technical based sales and services to the resources, maritime, defence, rail and power generation markets".

"One result of this business restructuring has been that a number of businesses whose activities did not complement the group's core service offering have been merged with key businesses and their activities realigned to better reflect group objectives or in the case of South Spur Logistics to be divested.

"It is the intention of Coote Industrial that, on completion of the business restructuring, the group's core service offering will be delivered by five (5) key businesses: Convair, Drivetrain, Gemco Rail, Industrial Powertrain and Momentum."

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