Scott's bought by AHG

Scott's Refrigerated Freightways was recently snapped up by Automotive Holdings Group in its latest round of acquisitions

Australian car and truck heavyweight Automotive Holdings Group has added to its logistics arm with the acquisition of Scott’s Refrigerated Roadways (SRF), in a deal said to be worth approximately $116 million.

The deal, which also includes the purchase of 100 per cent of JAT Refrigerated Road Services, was made along with the acquisition of NSW car dealership Bradstreet Motor Group for a further $68 million.

Based in Perth, Automotive Holdings Group employs over 5000 people in Australia and New Zealand, with over 150 car dealerships spanning 12 marques in NSW, Vic, Qld and WA and truck dealerships spanning nine marques.

Its logistics division includes RAND Transport, Harris Refrigerated Transport and now Scott’s Refrigerated Freightways, among others.

Scott’s Refrigerated Freightways is expected to generate revenue of $237 million and EBITDA of approximately $25 million in the 2014 financial year. AHG says it will realise a further $4 million in cost synergies through the rationalisation of various cold storage facilities and supply contracts.

According to AHG’s Managing Director, Bronte Howson, the purchase will create Australia’s largest provider of refrigerated distribution and cold storage.

“The acquisition of SRF and JAT will create the largest temperature controlled carrier in Australia,” he said.

“SRF and JAT are trusted service providers with strong relationships that will diversify our existing business and expand our customer service offering.”

The $116 million purchase price paid for SRF will comprise $71 million in cash, the issue to vendors of approximately 4.3 million AHG shares (worth around $15 million), and the assumption of approximately $30 million of finance leases.

Scott's bought by AHG

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