Managers take over United Carriers

By PAM GRAHAM

United Carriers Group, one of Northland's biggest employers, has completed a management buyout with debt and equity funding from ANZ Bank.

The operator of 200 trucks from branches in Kaitaia, Kaikohe, Kerikeri, Whangarei, Dargaville, Waipu, Auckland and Pukekohe employs 350 people.

The 11 partners who built up the business over the past 40 years sold a majority stake to managing director Ajit Balasingham, financial controller John Dykzeul and two partners who stayed on. ANZ Private Equity will hold a minority stake and the bank also funded the deal.

The purchase price was not disclosed but it is understood that the trucks alone were worth about $30 million. The company has a turnover of $66 million.

The deal is ANZ's second-largest private equity investment since it entered the business sector two years ago.

Private equity firms typically invest for about three to five years and exit via public share sales.

ANZ's Steve Byrom said the bank had not decided how it would exit the investment and it had agreed on a five-year "vision" with management.

He said the buyout was a way of transferring ownership from one generation to the next and it provided stable ownership for staff.

Balasingham joined the company in 1995 and became managing director three years ago.

"We believe we can grow revenue to $100 million over the next few years by expanding our national distribution business," he said.

The company carries logs, which is an expanding business in Northland where railway infrastructure is limited. The company also has interests in quarrying, road construction and insurance broking and has a customs agency.