Scott’s Refrigerated Transport sold to Automotive Holdings Group

Motor vehicle dealership and refrigerated transport company, Automotive Holdings Group Limited (AHG), has entered into a binding agreement to acquire Scott’s Refrigerated Freightways (SRF). 

Headquartered in Sydney, SRF is a national cold logistics business providing refrigerated road and rail line haul, local refrigerated distribution and cold store warehousing.

Managing Director and major shareholder, Bruce Scott, as well as the existing SRF management team will continue to manage the SRF business.

In conjunction with AHG's acquisition of SRF, SRF will acquire the remaining interests in JAT Refrigerated Road Services that it does not already own. JAT is a specialist chilled/frozen transport company based in Cairns, Queensland.

In combination with AHG's existing Rand and Harris operations, the acquisition of SRF (including JAT) consolidates AHG's position as a dominant provider of refrigerated transport and cold storage operations in Australia, with national route coverage and an integrated network of cold store facilities.

The acquisition is supposed to expand AHG's customer base and product expertise and will diversify AHG's exposure to seasonal peaks in fresh produce, allowing for more efficient use of infrastructure across the year. The SRF purchase will lead to the rationalisation of cold storage facilities in Perth, Adelaide and Melbourne.

“The acquisition of SRF and JAT will create the largest temperature controlled carrier in Australia. SRF and JAT are trusted service providers with strong relationships that will diversify our existing business and expand our customer service offering,” said AHG Managing Director, Bronte Howson. 

SRF Managing Director, Bruce Scott said, “The combination of SRF and AHG represents an attractive proposition for customers with a national network and the scale to invest in growing the business and I am excited by the opportunity to manage this business within the Automotive Holdings Group.”

The purchase price of approximately $116 million comprises of $71 million of cash to be paid to the vendors; 4.3 million AHG shares to be issued to the vendors ($15 million in total); and the assumption of approximately $30 million of finance leases.

AHG has also entered into an agreement to acquire Bradstreet Motor Group for $68 million in cash. Bradstreet Motor Group comprises of 13 automotive dealerships located in and around Newcastle, New South Wales and represents seven manufacturers – Toyota, Mazda, Holden, Nissan, Kia, Subaru and Great Wall. AHG already operates a multi franchised truck dealership at the Newcastle suburb of Beresfield.

The addition of the Bradstreet Group dealerships would take AHG’s network to 169 franchises at 96 dealership locations in Australia and New Zealand.

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