Sale to transform Hawkins, Scott Corp

Energytrans to be formed as Scott Corporation buys fuel and products transport business from a downsizing Hawkins

Sale to transform Hawkins, Scott Corp
Sale to transform Hawkins and Scott Corp
By Rob McKay | March 1, 2013

Three years after Hawkins Road Transport (HRT) backed out of general freight, the family-owned firm has all but sold its major Queensland fuel transport operations to Scott Corporation.

The deal, if finalised, will mark a significant change for both companies.

Hawkins CEO Ros Shaw describes the transfer of the haulage arm for an undisclosed sum as an amicable development and a "win-win" for those involved.

Family-owned Hawkins also has interests in Moreton Island tourism, rural fuel distribution in north-west Queensland and a truck-stop business.

Shaw says the deal came after long-term discussions with Scott Corp about the respective firms’ plans, rather than an approach by either side or any dissatisfaction with the transport industry on the part of Hawkins.

"The reason for the transport divestment is to concentrate on our fuel distribution business because that is where we would like to see our growth in the future," Shaw.

"That’s why we’ve been speaking together and it fits both our goals."

This second withdrawal from an industry sector will see Hawkins employees transferred and Shaw indicates that this aspect has had an effect beyond business considerations.

"We’ve been speaking to our people because some of them have been with us for a very long time and we’re a family business, so it’s quite emotional for a lot of them," she says.

"All of the management are going to transfer, so it’s going to be business as usual for our employees."

For his part, Scott Corp Managing Director David Keane tells investors his firm has reached an in-principle agreement for the contracts and assets and has secured the consent of major Hawkins clients for the transfer.

"HRT specialises in the distribution of fuel and petroleum products to the mining, aviation and retail consumer sectors," Keane states.

"It will serve as our entry point into the energy market which is a sizeable volume market relative to our existing industries serviced by our Chemtrans and Bulktrans brands."

The new business will be called Energytrans.

Keane expects the acquisition to add $20 million a year in revenue, which will push Scott Corp’s annual revenues through the $200 million a year mark.

To avoid duplication, Hawkins in Townsville will shift to Scott Corp’s operation there.

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