Freightways will have something to talk about at tomorrow's annual meeting after it announced a $117 million acquisition of Bill Chill Distribution, which operates a fleet of more than 200 refrigerated trucks and trailers.
The NZX-listed courier and information management company will pay $117m upfront, representing 80 per cent of Big Chill's enterprise value, with the balance to be paid in 2022 based on its earnings performance. Freightways will fund the acquisition through existing and new bank debt, and the purchase will start contributing to earnings once the deal settles in the first half of next year.
"The acquisition of Big Chill represents a highly compelling transaction and will provide Freightways with both short and long-term growth opportunities, while further diversifying its earnings base," chief executive Mark Troughear said in a statement.
"Big Chill's founders and senior management have done a fantastic job growing the business and we look forward to working together, recognising the strong cultural alignment between our two businesses."
Freightways chair Mark Verbiest told the New Zealand Shareholders' Association in September that the company had 40 potential acquisition targets in its sights, all of which revolve around the firm's core competencies in picking things up and dropping them off.
