TIL Logistics Group has expanded its specialised heavy haulage and specialised freight services with the purchase of Specialised Lifting and Transport Group (SLTG).
TIL Logistics is now well placed to be a strong competitor to Australian businesses. Photo: 123RF
The freight and logistics business paid $15 million in cash in addition to an issue of $4m in TIL shares at $1.50 each for SLTG.
SLTG includes Tranzcarr Heavy Haulage, Machinery Movers and Huge Movers.
TIL said the heavy haulage business complements its existing business, Multi-Trans Heavyhaul, while the other businesses opens it to a new sector.
Machinery Movers has a comprehensive fleet of trucks and trailers specialising in the extraction, transportation and installation of large machinery, while Huge Movers provides advisory services on the moving and transportation of large items.
TIL chief executive Alan Pearson said the company was now well placed to be a strong competitor to Australian businesses currently quoting for heavy haulage and specialised transport and lifting jobs in New Zealand.
"The New Zealand freight industry remains highly fragmented and TIL is well-positioned to lead future industry consolidation."
He said SLTG generates about $15 million in annualised revenue, and was expected to be immediately generating earnings for TIL.
The deal is unconditional and expected to settle by the end of the month.