In what is one of the biggest stories in the Australian transport business this year MaxiTRANS Industries Limited has announced it is selling off two significant parts of its business in a deal that is likely to net $48.3 million.
MaxiTRANS Industries has announced it has entered into an agreement with Australian Trailer Solutions Group to sell its Trailer Solutions business and its Ballarat property for $30.257 million), subject to shareholder approval,.
The Trailer Solutions Business includes MaxiTRANS trailer manufacturing, service, rental and the MaxiTRANS owned dealers in Australia and New Zealand.
Australian Trailer Solutions Group is said to be a Victoria-based group of private investors.
As well as seling off the trailer business MaxiTRANS has also revealed that it is in advanced discussions to sell its sites at Derrimut and Hallam sites to a third party for $18.05 million but this is subject to completion of the sale of the Trailers business.
The moves mean that MaxiTRANS is expected to transform into a dedicated commercial parts distribution business and is consistent with its strategy to optimise growth opportunities in MaxiPARTS.
As a consequence it will change its name to MaxiPARTS Limited, while the trailer business will continue to operate under the MaxiTRANS name.
“What we are announcing today creates two simplified and more focused businesses,” managing director and CEO of MaxiTRANS, Dean Jenkins said.
“In recent years, the financial performance of Trailers has been volatile,” said Jenkins.
“Having explored a range of alternatives to address these issues, we have concluded that these steps provide the best outcome for our shareholders, customers and people, while also creating a brighter future for the Trailers business under ATSG’s ownership,” he added.
“A standalone MaxiPARTS will have a stronger financial platform from which to develop its market-leading position and greater financial flexibility to play a prominent role in industry consolidation. It will also be a less complex business, which will enable a significant reduction in corporate overhead costs,” Jenkins said.
The company says that while the completion of the sale is subject to certain conditions, including shareholder approval, it is expected to occur by the end of August 2021 and added that while the change separates MaxiPARTS and MaxiTRANS, both businesses have formally agreed to continue working together into the future.
“For 75 years, we have been building MaxiTRANS into one of the transport industry’s leading companies,” said Jenkins.
“MaxiTRANS and MaxiPARTS will continue to build on this heritage, with our ongoing commitment to our customers, employees, suppliers, and the transport industry to deliver safer, more efficient, and reliable transport solutions. We will continue to provide ongoing customer support wherever and whenever it is needed,” he concluded.