Australia-based transport and logistics firm McAleese has agreed to buy Forrestfield-based WA Freight Group (WAFG) for a consideration of $15.4m.
WAFG is one of the major LTL express carriers, providing three-day express service to and from Western Australia and the Eastern States. It operates network of freight depot facilities in all major capital cities around Australia.
McAleese managing director and CEO Mark Rowsthorn said the acquisition of WAFG establishes a platform for further growth and diversification across geographies and transport sectors within the Group.
"WAFG has an established and diverse customer base, well located facilities and experienced personnel. We plan on leveraging the capabilities of this business further via organic opportunities and future complementary acquisitions in the Australian freight logistics sector," added Rowsthorn.
McAleese plans to invest an additional $5-7m in the company to upgrade assets and better position the business for growth.
The transaction, which is not expected to have a material impact on earnings in FY14, will be accretive to earnings per share in the first year.
WA Freight's management team will be retained, the company said.
McAleese will use its existing debt facilities to fund the acquisition, which is expected to be wrapped up in late April 2014.