Mainfreight said that option could be exercised at its sole discretion. Under the terms of the deed, it continued, Mainfreight would acquire Halford for approximately A$21m. That price, stated Mainfreight, was formulated on a six-times multiple of EBITDA earnings at Halford's financial year end (June 30, 2008). It added that 80% of the purchase price would be paid on completion, with the remaining 20% to be paid over a two-year period.
"The acquisition of Halford International provides Mainfreight with an increased presence in the Australian international freight forwarding sector," stated Mainfreight.
"Halford provides freight forwarding, customs clearance activities and logistics services to the market throughout Australia and New Zealand. It has six branches within Australia and New Zealand and a network of international agents throughout the world, including the key trading nations of Japan, Germany, Asia and the US."
According to Mainfreight, Halford's sales revenues in the financial year to June 2008 were expected to exceed A$65m and earnings would be positive. "Mainfreight believes this transaction will provide it with a strong foundation for further growth in the Australian international freight market, which is consistent with its strategies expressed to the market over the past 12 months."
Mainfreight added that pending the completion of certain closing conditions, the transaction was expected to close during July.
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