Providing shareholders sign off on the deal, MaxiTRANS Industries Limited (MXI) is selling off its Trailer division for $30.257m to the privately-owned Australian Trailer Solutions Group.
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.
The move also includes Trailer dealerships, service centres and rental operations in Craigieburn, Dandenong, Smeaton Grange, Derrimut, Adelaide and Christchurch, along with MaxiTrans’ share of the Trailer Sales Queensland business.
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.
The sale is expected to be wrapped up by the end of August, providing all conditions are met.
“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. 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.”
While the change separates MaxiPARTS and MaxiTRANS both businesses have formally agreed to continue working together into the future. Today’s media statement did not suggest that staff would be impacted by the sale.
“Our customers will remain core to everything we do, and we believe these changes will add focus and will improve the products and services we offer,” added Jenkins.
“MaxiTRANS and MaxiPARTS will continue to deliver customer support – with all operations, manufacturing sites, facilities, rentals, service centres and parts distribution remaining open and operating as normal.
“For our customers we do not foresee any immediate change in our day-to-day operations or customer sales and support. Our customer contact points for sales, delivery, service, and parts remain unchanged and are available for enquiry and ongoing customer support and communication.”