MaxiTRANS acquires Trout River Australia

Melbourne-based trailer manufacturing heavyweight MaxiTRANS has announced it is set to acquire Australasian Machinery Sales Pty Ltd (trading as Trout River Australia), a leading manufacturer and supplier of live bottom trailers in Australia.

Over the last financial year Trout River Australia had approximately $10m in annual sales and an EBITDA of approximately $2m. The acquisition is expected to be earnings accretive over this financial year, with returns anticipated to exceed MaxiTRANS' weighted average cost of capital in the first full year of ownership.

MaxiTRANS says the acquisition will be completed in two tranches: 80 per cent for $5.9m in cash (subject to customary completion adjustments), expected to be completed shortly, and 20 per cent by 30 June 2021 under an earn-out arrangement.

Following MaxiTRANS' recent capital allocation review and the sale of MTC, the acquisition will be funded out of existing cash and debt facilities.

MaxiTRANS says the acquisition will have four major benefits for the group, including:

• The addition of live bottom trailers will add products with strong application in the infrastructure construction sector.
• Leveraging MaxiTRANS' national dealer network will drive increased sales of Trout River Australia live bottom trailers.
• Improved production capacity and efficiency of the existing Trout River Australia business by leveraging MaxiTRANS' facilities, procurement systems and engineering and manufacturing expertise.
• Improved after-sales customer service for Trout River Australia customers through the MaxiTRANS' national parts network, MaxiPARTS, as well as MaxiTRANS' national network of repair and service facilities.

Dean Jenkins, Managing Director and CEO of MaxiTRANS, said he was looking forward to the completion of the acquisition.

"We look forward to welcoming John Surwillo and Neil Lehman, the current owners of Trout River Australia, to the MaxiTRANS group," he said.

"John and Neil's ongoing involvement in the business will facilitate a smooth transition and enable the Trout River Australia business to continue to benefit from their deep product knowledge."

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