MaxiTRANS announces it has entered into an agreement to acquire Australasian Machinery Sales Pty Ltd (trading as Trout River Australia), a leading manufacturer and supplier of live bottom trailers in Australia.
In FY18, Trout River Australia had approximately $10m in annual sales and an EBITDA of approximately $2m. The acquisition is expected to be earnings accretive in FY19 with returns anticipated to exceed MaxiTRANS’ weighted average cost of capital in the first full year of ownership.
Following MaxiTRANS’ recent capital allocation review and the sale of MTC, the acquisition will be funded out of existing cash and debt facilities.
The acquisition is expected to provide a number of benefits to the MaxiTRANS group, including:
- The addition of live bottom trailers into MaxiTRANS’ comprehensive portfolio will add products with strong application in the infrastructure construction sector.
- Leveraging MaxiTRANS’ national dealer network will drive increased sales of Trout River Australia live bottom trailers.
- Improved production capacity and efficiency of the existing Trout River Australia business by leveraging MaxiTRANS’ facilities, procurement systems and engineering and manufacturing expertise.
- Improved after-sales customer service for Trout River Australia customers through the MaxiTRANS’ national parts network, MaxiPARTS, as well as MaxiTRANS’ national network of repair and service facilities.