7 Mar 2011

Mainfreight to buy European transport firm

1:01 pm on 7 March 2011

Mainfreight is expanding into Europe, buying a Netherlands-based transport and logistics firm for $205 million.

The listed freight and logistics company is buying Wim Bosman Group which has 14 branches across six European countries.

Mainfreight managing director Don Braid says the acquisition will be funded through bank debt, and cash flow from Wim Bosman will be more than enough to meet interest costs and repayments.

The purchase price includes an additional $18 million if Wim Bosman meets earnings targets for the 2011 financial year. The deal is expected to be completed by 1 April.

Mainfreight said its debt to debt-plus-equity ratio would rise to about 48% from around 17.5%.