Boom Logistics on the acquisition trail
01 May 2008
Australia: Rental house Boom Logistics has completed its 11th, 12th and 13th acquisitions in five years with the purchase of Cameron Cranes Pty Ltd, Carrington Steel Pty Ltd and Brambles Port Hedland Cranes.
Largest of the three deals, at AUS$13.85 million ($10.5 million), is the purchase of the Brambles fleet in Western Australia. The fleet of 11 heavy lift cranes generates annual revenue of around AUS$10 million ($7.5 million). There are long term contract agreements with BHP Billiton Iron Ore. The combined fleets of Cameron Cranes and Carrington Steel are 15 cranes and nine aerial work platforms.
Boom Logistics, which was formerly the Australian Crane Company, changed its name in 2000 to act as the corporate vehicle for the acquisition of well–established and successful private businesses throughout Australia that occupied strategic positions in the crane rental industry. Boom Logistics is listed on the Australian Stock Exchange, where it is one of the best–performing construction companies.
Rumours in the financial media suggested that Boom Logistics may have been on the verge of being sold by its backers last month when trading in its shares was halted, but instead this proved to be linked with the recent acquisitions.