McAleese sells off refuelling equipment firm


US subsidiary part of divestment program that aims to reduce debt

McAleese sells off refuelling equipment firm
McAleese's debt reduction is accelerating

 

The rationalisation of trucking firm McAleese continues apace with sale of another arm as part of its divestment strategy.

The latest to go is Beta Fluid Systems, a US refuelling equipment firm that had been part of subsidiary Liquip International, which has already been sold.

The binding asset sale agreement is worth about $6 million to the Australian company.

It follows the planned divestment of the Cloncurry Quarry and the sale of surplus Cootes Transport and Heavy Haulage & Lifting equipment.

The program is now expected to generate in excess of $100 million in the first half of this financial year, up from $95 million previously announced in August.

McAleese Group net debt has fallen to $180 million in September from $233 million at June 30 and it says completion of the program is set generate about $25 million.

 "The higher than expected proceeds from the asset sale program combined with the successful implementation of our previously stated operational improvements further strengthen our financial and operational position and deleverage our balance sheet," group managing director Mark Rowsthorn says.

"Execution of these initiatives holds McAleese Group in good stead to capitalise on suitable growth and diversification opportunities as they arise."

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