27 Aug 2013

Mainfreight happy with European purchase

7:35 am on 27 August 2013

Mainfreight has no regrets about buying its European business, Wim Bosman Group, managing director Don Braid says.

That's despite it losing more business than it bargained for when customer Giant Europe terminated its contract with Wim Bosman.

Mainfreight has just settled its resulting claim against Wim Bosman's former owners.

The former owners have agreed they aren't entitled to the originally agreed €10 million earn-out payment, and they will pay an extra €8.2 million in recompense.

That reduces the price Mainfreight paid for Wim Bosman in 2011 from a maximum of €120 million to just under €102 million.

Mr Braid says the Wim Bosman purchase was still a major step towards giving his company global reach, and the company remains happy with the move.

"It's placed us in Europe, in the Northern Hemisphere, giving us the start of a real global reach," he says.

"So we're extremely pleased to be there. It's what we wanted to do. We bought a business that has struggled, and we've had the European crisis at the same time.

"But we're happy with what we've got and are certainly looking forward to developing it further and taking Mainfreight to an even greater global reach."