Invercargill-based HW Richardson Group (HWR Group) is announcing an agreement to acquire a 50% stake in the Dynes Transport group.
HWR chief executive Brent Esler says the move realises significant benefits across the respective areas of specialist transport, particularly given both operations have similar family ownership structures and company values.
HWR has national interests in rural transport, petroleum distribution, ready mix concrete, aggregate and cement transport, and Dynes in dairy and forestry logistics, including port material handling operations.
Both businesses focus on delivering game-changing solutions to their transport customers and working together would fast-track development of new systems and solutions, and ensure productive asset use.
The Dynes Transport group includes Dynes Transport Tapanui Ltd, Dunedin Carrying Company Ltd, port logistics company NFA Ltd, Bulk Liquid Solutions Ltd, with Full Fleet Services Maintenance Ltd and the Dynes stake in Icon Logistics Ltd.
Under the joint venture agreement, the operations of HWR’s Southern Transport Logging will transfer into the Dynes joint venture company, and Dynes would also take a stake in HWR’s Hastings based Farmers Transport Ltd.
Dynes Group managing director Peter Dynes, say the move focuses on the future potential which the two businesses working together could achieve.
He said the JV partners have a good track record in delivering innovative transport solutions and combining financial strength and industry knowledge would enable them to continue and accelerate the delivery of future innovation.
“The businesses cultures and values align with both businesses having strong Southern roots and continue to be family owned,” says Dynes.
Dynes will continue to lead the Dynes businesses under the JV structure, and operationally it would be business as usual.
The transaction is now undergoing due diligence review and is planned to be completed by November 1, 2016.
