The Directors are pleased to announce that Scott Corporation Limited (SCC) has entered into an agreement to purchase the business assets of Allfreight Australia. Allfreight is a Melbourne based transport business which specialises in supplying “high explosive” capabilities to the mining, quarry and defence services sectors. Mr David Keane noted “This acquisition allows us to widen the service offering we are able to provide to the Australian dangerous goods industry, as well as open up new growth opportunities for our Chemtrans division.”
Scott Corporation’s Managing Director, Dave Keane said . The original contract commenced in March 2009 and will now continue for another 3 years from March 2012. The contract allows our client to further extend the term of the agreement by up to 2 years at their discretion. Scott Corporation will invest approximately $8 million into new plant and equipment for this next phase of the relationship, and establish a 7 day operation as opposed to the current 5 day base scenario. This new business model will generate approximately $8 million in revenue per year, which is nearly double the historical revenue of that contract.
http://www.traderdealer.com.au/Fundamentals/scc
