MaxiTRANS Industries Limited (MXI) is divesting a business unit and select properties for a total sale price of $48.3 million.
MXI has entered into an asset sale agreement to sell the Trailer Solutions Business (Trailers) and Ballarat property to Victoria-based private investors, Australian Trailer Solutions Group (ATSG), subject to shareholder approval, for $30.257 million.
Trailers includes MaxiTRANS trailer manufacturing, service, rental and MaxiTRANS owned dealers in Australia and New Zealand.
In addition, MXI is in advanced discussions to sell its Derrimut and Hallam sites to a third party for a cash consideration of $18.05 million. The sale of these properties will be subject to completion of the sale of Trailers.
These transactions are expected to transform MXI into a dedicated commercial parts distribution business and is consistent with MXI’s strategy to optimise growth opportunities in MaxiPARTS.
MXI will change its name to MaxiPARTS Limited (MaxiParts), while Trailers will continue to operate under the MaxiTRANS name.
“What we are announcing today creates two simplified and more focused businesses,” said MaxiTRANS Managing Director and CEO, Dean Jenkins.
“In recent years, the financial performance of Trailers has been volatile,” said Jenkins. “Having explored a range of alternatives to address these issues, we have concluded that these steps provide the best outcome for our shareholders, customers and people, while also creating a brighter future for the Trailers business under ATSG’s ownership.
“A standalone MaxiPARTS will have a stronger financial platform from which to develop its market-leading position and greater financial flexibility to play a prominent role in industry consolidation. It will also be a less complex business, which will enable a significant reduction in corporate overhead costs.”
Completion of the sale is subject to certain conditions, including shareholder approval, and is expected to occur by the end of August 2021. While the change separates MaxiPARTS and MaxiTRANS both businesses have formally agreed to continue working together into the future.
“For 75 years, we have been building MaxiTRANS into one of the transport industry’s leading companies,” said Jenkins. “MaxiTRANS and MaxiPARTS will continue to build on this heritage, with our ongoing commitment to our customers, employees, suppliers, and the transport industry to deliver safer, more efficient, and reliable transport solutions. We will continue to provide ongoing customer support wherever and whenever it is needed.”