UPDATE: THE McAleese Group have agreed to pay $3 million for a 50% equity investment in HHA Group Pty Ltd with an option to to acquire the remaining 50% in 2 to 5 years.
The shareholders of HHA have agreed to provide $7 million of working capital facilities, with McAleese Group contributing $4 million of this amount.
McAleese Group will also support the growth opportunities of HHA through the provision of existing assets or investment in specialised new equipment to accelerate the expansion of HHA in its target sectors.
McAleese Group Managing Director and CEO, Mark Rowsthorn said the key strategic reason for this investment was the opportunity to diversify into the attractive infield oil and gas sector, which demonstrates strong long term growth prospects.
"Further, this investment will see both businesses improve asset utilisation and expand their range of services," he said.
EARLIER: HEAVY Haulage Australia (HHA) has announced that it has entered into a Share Sale and Purchase Agreement with McAleese Limited for the acquisition of 50% of the HHA Group.
In a statement the company said "the outcome of this transaction will see Heavy Haulage Australia cement its standing as the country's premier heavy haulage logistics provider and ensure its innovative and market leading approach to safety, equipment and overall operations will continue for years to come".
In relation to this transaction Heavy Haulage Australia 's Managing Director Jon Kelly said; "I am very excited by the prospect of this partnership which combines the operations of HHA with the McAleese Heavy Haulage & Lifting division to provide a formidable national service offering within the Australian heavy haulage marketplace".
"HHA has been very successful over the past two years in diversifying its portfolio of work and securing long term contracts however this success has seen a need for additional capital investment to ensure we continue to provide the highest standard of company owned assets to all new and existing clients…
"We will also be looking to leverage the extensive McAleese Heavy Haulage & Lifting fleet to assist us in furthering our service offering to our clients in a vast array of locations across Australia.
"The on road, heavy lift and corporate support that McAleese can offer HHA will only allow us to further flourish within our defined chosen markets
"Similarly HHA will continue to provide its market leading safety, engineering, fleet presentation and maintenance practices ensuring the highest standards are applied across both businesses and the delivery of a mutually beneficial and stronger overall partnership"
"The past five years at HHA have been an amazing success story - our growth through trying times is a credit to our great customers and our professional staff. Our strategic partnership with McAleese allows me to keep pushing our vision and service offering with the added benefit of their asset base and financial capability - HHA is not a small business anymore and it is exciting to recognise that the brand will flourish for many, many years to come."
Read the Big Rigs interview with Jon Kelly in the next edition.
The Heavy Haulage Australia Group is the largest 100% privately Australian owned Heavy Haulage business in Australia.
HHA employs 122 staff nationally and have locations in Brisbane (Head Office), Toowoomba, Darwin, Port Hedland, Perth and Adelaide.
From a single operator in 1999, HHA, under the stewardship of its Managing Director, has grown to boast one of the largest heavy haul fleets in Australia with more than 65 prime movers, 760 axle lines of trailers and 18 cranes.
Outside of its impeccably presented equipment another distinguishable attribute which is a cornerstone of HHA's
success is its willingness to identify and invest in commonly incurred external ancillary costs which are
associated with heavy haul logistics (i.e. Cranes, Pilots and High Wire escorts) to ensure the high level of service
and appreciation for the customer is maintained throughout the whole project/ engagement.
The above is a snapshot to the vertically integrated offering HHA is able to provide its customers and is the core
basis to the synergies it on forwards to its clients.
This platform reduces client risks by enforcing a high quality logistical engagement with complete adherence to HHA's Tier 1 Safety and rigorous Chain of Responsibility standards.
Such pursuit of excellence in heavy haulage logistics is exactly why HHA achieved audit results in quality management compliance that distinguishes HHA in the industry nationwide.