KEY POINTS:
Freight and logistics company Mainfreight is close to a A$21 million ($26.7 million) purchase of privately owned Australian-based Halford International.
Mainfreight said it had today signed a call option deed to acquire all the shares in Halford, an international freight forwarder and logistics provider.
The call option could be exercised at Mainfreight's sole discretion and, pending the completion of certain closing conditions, the transaction was expected to close during July.
Mainfreight said that buying Halford provided it with an increased presence in the Australian international freight forwarding sector.
Halford had six branches within Australia and this country, and a network of international agents throughout the world, including the key trading nations of Japan, Germany, Asia and the United States.
Halford International's sales revenues in the financial year to June were expected to exceed A$65 million and earnings would be positive, Mainfreight said.
It believed the transaction would provide it with a strong foundation for further growth in the Australian international freight market.
The purchase price was based on a six-times multiple of earnings before interest, tax, depreciation and amortisation at Halford International's financial year end.
Mainfreight shares were down 3c to $7.33 shortly before noon, having ranged between $7.70 and $5.45 in the past year.
- NZPA
