Mainfreight announces agreement to acquire Halford International
Mainfreight Limited (Mainfreight) today signed a call option deed to acquire all of the shares of Halford International Pty Limited (Halford International), an Australian-based, privately owned, international freight forwarder and logistics provider.
The call option may be exercised in Mainfreight's sole discretion. Under the terms of the deed, Mainfreight will acquire Halford for approximately $A 21 million. This price is formulated on a six-times multiple of EBITDA earnings at Halford International's financial year end (30 June 2008). 80% of the purchase price will be paid on completion, with the remaining 20% to be paid over a two-year period.
The acquisition of Halford International provides Mainfreight with an increased presence in the Australian international freight forwarding sector. Halford International provides freight forwarding, customs clearance activities and logistics services to the market throughout Australia and New Zealand.
It has six branches within Australia and New Zealand, and a network of international agents throughout the world, including the key trading nations of Japan, Germany, Asia and the United States of America.
Halford International's sales revenues in the financial year to June 2008 are expected to exceed A$65 million and earnings will be positive. Mainfreight believes that this transaction will provide it with a strong foundation for further growth in the Australian international freight market, which is consistent with its strategies expressed to the market over the past 12 months.
"We are impressed by Halford's strong culture and capabilities, and we look forward to welcoming the Halford International team to the Mainfreight family", said Don Braid, Mainfreight's Group Managing Director.
Pending the completion of certain closing conditions, the transaction is expected to close during July 2008.