K&S launches takeover bid of national carrier to expand and diversify operations
November 13, 2013
K&S Corporation has a launched a takeover bid for Scott Corporation to add some of the country’s leading trucking divisions to its ranks.
In a move Scott Corp’s board has backed, K&S has sought at least a 75 per cent stake in the national carrier, which is involved in the transport of bulk goods, liquids and explosives.
Announcing the takeover as a merger, K&S Deputy Chairman Greg Boulton says it represents a great way to expand the scope and scale of K&S.
“Scott Corporation operates in different functional and geographic markets to K&S Corporation and offers an opportunity to diversify our business. With its exposure to the resources sector, we see Scott Corporation’s business as being highly complementary to K&S Corporation,” Boulton says.
Scott Corp shareholders who accept the takeover offer will receive cash or K&S shares for each of their Scott Corp shares. Boulton says they will benefit from being part of a larger and more diversified transport operation with greater access to capital to fund future growth.
Scott Corp consists of Chemtrans, Bulktrans, Energytrans and the Hyde Park Tank Depot.
Chemtrans carries dangerous goods, while Bulktrans hauls dry bulk goods including coal, agricultural and waste products. Energytrans is primarily focused on carrying fuels and lubricants to the mining sector in Queensland. The Hyde Park Tank Depot operates in Melbourne as a one-stop-shop for tanker and container cleaning and repairs.
Scott Corp announced a $4.3 million net profit for last financial year.
“Scott Corporation’s independent board committee intends to unanimously recommend the K&S Corporation offer, subject to there being no superior proposal and an independent expert determining that the K&S Corporation offer is fair and reasonable,” Scott Corp Chairman Brett Johnson says.
K&S in August unveiled a net profit of $15.9 million for the 2013 financial year, citing strong demand from the resources sector for the result.
