McAleese takes 50pc stake in Heavy Haulage Australia


Deal gives McAleese the option for a full takeover in the next two to five years.

McAleese takes 50pc stake in Heavy Haulage Australia
Room to grow: HHA's partnership with McAleese will give the heavy haulage firm greater opportunity to expand its operations.

 

McAleese has taken a 50 per cent stake in freight firm Heavy Haulage Australia (HHA) in a bid to broaden its reach into the infield oil and gas sector.

McAleese announced today it will pay $3 million for a 50 per cent share of HHA, which has grown from a one-truck operation in 1999 to one of the country’s leading heavy haulage outfits primarily focussed on the oil and gas sector.

The deal also gives McAleese the option for a full takeover of HHA in two to five years.

"The key strategic reason for this investment is the opportunity to diversify into the attractive infield oil and gas sector, which demonstrates strong long-term growth prospects," McAleese managing director and CEO Mark Rowsthorn says.

"Further, this investment will see both businesses improve asset utilisation and expand their range of services."

The agreement includes a commitment from HHA to provide $7 million of working capital facilities. McAleese will contribute $4 million of this amount.

McAleese will also support HHA’s growth plans through the use of existing assets or investment in specialised new equipment. McAleese hopes the move will accelerate HHA’s expansion in its target sectors.

HHA will be combined with McAleese’s heavy haulage and lifting division.

"HHA has been very successful over the past two years in diversifying its portfolio of work and securing long-term contracts," HHA managing director Jon Kelly says.

"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."

Kelly says the company will be looking to leverage McAleese’s fleet to help it increase its service offering throughout much of 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," Kelly says.

HHA has facilities in Brisbane, Toowoomba, Darwin, Port Hedland, Perth and Adelaide.

Its main customer base is made up of major infield oil and gas producers, freight forwarders and mining and infrastructure companies.

HHA is expected to generate revenue of $60 million this financial year, up from $49 million in 2013-2014.

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