MaxiTRANS sold for $48.3m

Iconic Australian trailer manufacturer MaxiTRANS has been split into two entities with the trailer manufacturing side being sold to a private company.

The company purchasing MaxiTRANS, Australian Trailer Solutions Group (ATSG), is a recently formed private company consisting of local investors, according to spokesman we spoke to today.

In a statement to the Australian Stock Exchange, the company said in part: “MaxiTRANS Industries Limited (MXI) has today entered into agreements to sell its Trailer Solutions Business (Trailers) and Ballarat property to Australian Trailer Solutions Group Pty Ltd (ATSG) for an enterprise value of $30.257m, subject to shareholder approval.

“In addition, MXI is in advanced discussions to sell its Derrimut and Hallam sites to a third party for a cash consideration of $18.05m. The sale of these properties will be subject to completion of the sale of Trailers.

“These transactions will transform MXI into a dedicated commercial parts distribution business and are consistent with MXI’s strategy to optimise growth opportunities in MaxiPARTS. MaxiTRANS Industries Limited will change its name to MaxiPARTS Limited (MaxiPARTS). Trailers will continue to operate under the MaxiTRANS name.”

Commenting on the sale in a press release this morning, MaxiTRANS Managing Director and CEO, Dean Jenkins, said: “What we are announcing today creates two simplified and more focused businesses.

“In recent years, the financial performance of Trailers has been volatile. Having explored a range of alternatives to address this issue, we have concluded that these steps provide the best outcome for our shareholders, customers and people, while also creating a brighter future for the Trailer 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,” Mr Jenkins added.

The sale is expected to close at the end of August, following shareholder approval, and the MXI Board has unanimously recommended that MXI shareholders vote in favour of the sale of Trailers and the Ballarat property, adding that the sale is in their best interests.

MXI Chairman Rob Wylie commented: “This is an exciting opportunity for MaxiTRANS’ current business segments to develop and grow into the future. The Board unanimously recommends this transaction to shareholders.”

We understand that at present it’s business as usual for both MaxiTRANS and MaxiPARTS and that all the brands will be retained and the sites will also be retained.

While the change separates MaxiPARTS and MaxiTRANS, both businesses have formally agreed to continue working together into the future. 

Customer and supplier contact points for sales, delivery, service, and parts remain unchanged and are available for enquiry and ongoing customer support.

“For 75 years, we have been building MaxiTRANS into one of the transport industry’s leading companies,” Mr Jenkins said.

“ and MaxiPARTS will continue to build on this heritage through our ongoing commitment to our suppliers, customers, employees, 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.”

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