MaxiTRANS Announces Agreement to Sell its Trailer Solutions Business
A Message for our Suppliers
23 July, 2021
One of Australia's largest Semi-Trailer manufacturers and suppliers of truck and trailer parts, MaxiTRANS Industries Limited (MXI), today announced that it has entered into an Asset Sale Agreement to sell the Trailer Solutions Business (Trailers) to Australian Trailer Solutions Group Pty Limited (ATSG), an Australian based privately owned company, subject to shareholder approval.
“What we are announcing today creates two simplified and more focused businesses,” said MaxiTRANS Managing Director and CEO, Dean Jenkins.
The sale includes MaxiTRANS trailer manufacturing, service, rental and MaxiTRANS owned dealers in Australia and New Zealand and will retain and continue to operate under the MaxiTRANS name.
“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.”
MXI will change its name to MaxiPARTS Limited (MaxiPARTS) and will remain listed on the ASX. These agreements will transform MaxiPARTS into a dedicated commercial parts distribution business and are consistent with the strategy to optimise growth opportunities in MaxiPARTS.
“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.”
Completion of the sale is subject to certain conditions, including shareholder approval, and is expected to occur by the end of August 2021. Whilst the change separates the MaxiPARTS and MaxiTRANS businesses, they have formally agreed to continue working together into the future.
For our suppliers we do not foresee many changes. MaxiTRANS and MaxiPARTS will continue to purchase all goods and services from their current supplier base to support their ongoing operations. All invoices for the Trailers business that are due and payable before and on the expected closing date, will be made as they are today. Once ATSG has assumed control, all invoices relevant to the Trailers business will be paid by ATSG.
Some of you will no doubt be aware that your organisation supplies products and or services that are used across the entire MaxiTRANS Group. Over the coming weeks we will sit down with you and determine the best way forward to manage the potential changes in our contractual relationship. We remain committed to ongoing and open dialogue with you. Contact points for our Purchasing and Accounts Payable teams remain unchanged.
“For 75 years, we have been building MaxiTRANS into one of the transport industry’s leading companies. MaxiTRANS and MaxiPARTS will continued to build on this heritage, with our ongoing commitment to our suppliers, customers, employees, and the transport industry to deliver safer, more efficient, and reliable transport solutions. We look forward to continuing our relationship with all our suppliers."