McAleese Limited announces the sale of its logistics arm, Liquip International Pty Limited to OPW, a business unit of Dover Corporation, a publicly traded company in the USA.
McAleese has entered into a binding share sale agreement with OPW for the sale of Liquip, with the sale targeted to be completed by mid-August. McAleese Group had previously advised that Liquip was non-core to its future strategy and will be more valuable as part of a natural owner.
Managing Director and CEO of McAleese Group, Mark Rowsthorn, commented that the sale to OPW presents new growth opportunities for the Liquip business and its employees and is a pleasing outcome for the shareholders of McAleese Group. Canterbury Partners acted as corporate advisors to the McAleese Group in respect of this transaction.
Asset sales, including surplus equipment from the Cootes Transport and Heavy Haulage & Lifting businesses, are progressing with proceeds from divestments expected to generate in excess of $95 million. This is approximately 20% above the initial expectations detailed in the 2 June trading update.
According to Mr Rowsthorn, their targeted initiatives announced on 2 June are already delivering results with each of their businesses demonstrating stabilised performance. The Bulk Haulage business has successfully commenced the transport of new contracted tonnage from Atlas Iron’s Mt Webber mine, the sale of non-core assets has exceeded initial expectations; and the Cootes Transport restructure is largely complete.
The McAleese Group now looks ahead to the next phase to diversify and de-risk their business and consider new opportunities in the transport and logistics landscape to ensure the company remains robust well into the future.