By PETER GRIFFIN
The economic fallout from the September 11 attacks has only just cleared for local vending operator Vending Technologies - but at a cost.
VTL has settled legal action with Australia's largest independent vending company, Soche, which it had earmarked for a $2.5 million acquisition before the terrorist strikes.
VTL claimed a clause in the contract allowed it to quit the deal if adverse market conditions arose. Soche disagreed and started legal action seeking damages of A$2 million ($2.4 million).
VTL director Mervyn Doolan would not reveal details of the settlement except that it was substantially less than what Soche had been chasing.
The costs would be booked in VTL's financial accounts for the last financial year.
Doolan said some of Soche's biggest clients suffered in the wake of the attacks, laying off staff at many sites where Soche's vending machines were installed.
"There were airline companies, banks, motor companies who were all clients and all of them have been significantly hit. We were basing the purchase price on income attributable to those sites."
Doolan said yesterday that VTL was no longer on the acquisition trail, despite buy-ups being the major growth strategy of the company's annual report last year. Growth in the Australian market would instead come from expansion within the company.
Vending Technologies shares closed down 5c at $2.30 yesterday.
Vending Technologies settles transtasman dispute
AdvertisementAdvertise with NZME.