NZX-listed Hellaby Holdings has announced a conditional agreement to sell its equipment group – comprised of NZ Trucks and AB Equipment – to private equity fund Maui Capital, for $81 million.
The sale is expected to realise a capital gain on a book value of around $30 million, after costs and working capital adjustments.
Proceeds from the sale will be earmarked for investment into Hellaby’s core Automotive and Resource Services groups, after initially being used to reduce debt.
Hellaby says both sectors offer considerable development, scale, and investment potential and will be its primary focus for acquisition and organic growth.
“The Equipment Group is New Zealand’s leading heavy equipment sales, servicing and forklift rental business. It has a long record of delivering value, and it represents some high-profile brands,” says Hellaby Holdings managing director Alan Clarke.
He says an unsolicited approach received from Maui Capital saw the board determining that the terms of the offer would crystallise considerable value for Hellaby’s shareholders.
“We were satisfied that our staff, clients, and suppliers would be in safe and capable hands going forward, with an owner who has significant expertise,” says Clarke.
The settlement is expected in the next few months once all transaction conditions, including the purchaser obtaining appropriate funding, have been met.
As previously advised, Hellaby says its footwear division is also considered non-core and will be divested at an appropriate time.
