K&S to acquire NT Freight Services


Deal will allow K&S to expand its offering along the Adelaide to Darwin corridor.

K&S to acquire NT Freight Services
K&S is expected to finalise its takeover of Northern Territory Freight Services in early March.

 

K&S Corporation will acquire the full business and assets of Northern Territory Freight Services (NTFS).

The transaction, for an undisclosed sum, is expected to be finalised in the first week of March.

NTFS was established in 1972 and has customers predominantly in the fast-moving consumer goods sector. It works across both rail and road, and has a diverse fleet that includes road trains of up to 50m.

For K&S, the acquisition will mean an immediate opportunity to increase its exposure to the Adelaide to Darwin corridor, and the chance to take advantage of the relatively strong economic growth currently taking place in the Northern Territory.

"The acquisition will also allow K&S Corporation to provide additional services to the north-west region of Western Australia, complementing the existing services currently provided from Perth through the Regal [Transport] business," the company says.

NTFS currently employs around 100 people and generates revenue of more than $50 million a year.

K&S says it will fund the acquisition through its existing debt instruments.

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