K&S Corporation Limited, a leading Australian transport, logistics and supply chain group, has announced a further expansion of its Western Australian operations with an agreement to acquire the business and assets of the Bunbury-based Collare Transport group.
The acquisition, expected to be completed by October 31 this year, follows significant growth over the past three years in K&S Corporation’s WA operations which underpinned solid earnings growth for the group in the past financial year.
Collare Transport, a Bunbury-based business with a strong focus on the timber industry in WA, has annual revenue of approximately $12 million and employs around 35 people.
The Collare operation is said to possess a complimentary customer profile, lane mix, and equipment base to K&S’ Dardanup (WA) based business which formerly operated as Brookes Transport.
K&S managing director, Greg Stevenson, said the acquisition would be funded by existing debt facilities and will be earnings accretive immediately.
“The acquisition presents an excellent opportunity to generate operational synergies and to improve the returns of the combined Dardanup and Collare businesses,” Stevenson said. “Significantly, it offers improved earnings for K&S from a comparatively modest outlay and further demonstrates K&S’ ability to identify quality assets that add value to its business.”