16/04/2014 - 09:40

McAleese in $15m WA Freight Group buy

16/04/2014 - 09:40

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Listed transport and logistics company McAleese Group has announced plans to acquire Forrestfield-based WA Freight Group for $15.4 million.

McAleese in $15m WA Freight Group buy

Listed transport and logistics company McAleese Group has announced plans to acquire Forrestfield-based WA Freight Group for $15.4 million.

McAleese said the all-cash purchase would provide a platform for growth and diversification in the freight logistics sector.

The acquisition will not have a material impact on earnings but is expected to be earnings per share accretive in the first year.

WAFG has its main depot in Forrestfield and also owns depots in all other capital cities.

It employs more than 250 people and a network of subcontractors and is currently estimated to deliver revenue of about $90 million per annum.

The company was founded in 1991 as WA Freightlines and was initially focused on serving Western Australian companies and branches of national companies.

It merged with Jolly's Transport and Jetstyle Express in 2004, establishing an east-west express freight network.

The group was consolidated into the Gresham Partners-backed Silk Logistics Group in 2008 but Gresham has since divested the companies.

McAleese managing director Mark Rowsthorn said WAFG had established a reputation as the leading express freight carrier on the east-west corridor.

"WAFG has an established and diverse customer base, well-located facilities and experienced personnel," he said.

"We plan on leveraging the capabilities of this business further via organic opportunities and future complementary acquisitions in the Australian freight logistics sector."

The purchase will be funded from McAleese's existing debt facilities and is expected to close later this month.

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