WWL gains 20 per cent of Australian firm but keeps ro-ro terminal
Norway’s Wallenius Wilhelmsen Logistics (WWL) has agreed with Prixcar Services to fold its Australian business into the Australian company’s operation in exchange for 20 per cent of that of that firm.
The pair says the deal sees local entity WWL Australia hand over its inland transportation and technical service business, though WWL “will remain an active participant in the market through board representation and close cooperation with Prixcar”.
Finished auto logistic services concern Prixcar, owned by Toll, K Line Australia and Qube, gains WWL’s presence in the heavy truck, rolling equipment and machinery segment.
The joint business is expected to have an annual turnover in excess of $250 million and a team of over 1,000.
The transaction does not include WWL’s terminal business, Melbourne International Ro-Ro Automotive Terminal (Mirrat).
“The joining of these two companies both sharing similar values with a strong focus on safety, people, innovation, environment, and our customers will assist in enabling the group to further expand its ability in creating value for its employees, customers and business partners, offering an expanded range of both services and locations.” Prixcar Services chairman Alan Miles says.
According to the companies, existing customers of both companies will benefit from continued high-quality services and an extended footprint throughout the country.
“This transaction and our new partnership with the Prixcar Group will increase the scale and geographic reach of our land-based activities in Australia, providing our customers with an enhanced product,” WWL president and CEO Craig Jasienski says.
The transaction is subject to regulatory approvals here but is expected to close in the first calendar quarter of next year.
WWL Australia head of land-based operations Mark Guscott tells ATN the deal is a “natural fit”.
“It will increase the scale and complexity of their business,” Guscott says, noting the deal includes distribution of major imported European and US truck brands.
Prixcar will take over WWL’s four facilities around the country to add to the dozen or so it controls.
“We provide a number of supply chain agreements where we manage the movement of some of that heavy freight – all of that work will go across to Prixcar as well.”
WWL’s move is predicated on gaining a swift expansion in services coverage nationally and is consistent with other moves globally.
“When we look at this market in Australia, and we’ve been operating land-based logistics for 17 or 18 years – we want to grow,” Guscott says.
“We need bigger facilities and we probably need transport assets.”
This way, Prixcar, with its facilities and fleet of about 250 combinations, becomes part of WWL’s network.
“What we see is the fastest way to achieve the growth that we are seeking in this market and to be able to interact with more OEMs across cars, trucks and heavy machinery is through partnership,” ,” Guscott says.
Qube declined to comment on the deal while a response from Toll is still awaited.
Qube and WWL entered a Prixcar ownership transaction earlier this decade, through WWL’s owning company Wilh Wilhelmsen Holding (WWH).