Qube has this week announced the acquisition of a WA operator, as part of a move to expand its capabilities in the west’s booming mining sector.
The transport and logistics giant has taken ownership of Coleman’s Transport.
Coleman’s Transport is an integrated transport, logistics and storage business involved in the Security Sensitive Ammonium Nitrate (SSAN) supply chain in Western Australia.
SSAN is one of the predominant explosives used on mine sites for commodities such as iron ore, lithium, nickel and zinc.
Speaking with Big Rigs, Qube revealed its latest acquisition will include the company’s high security storage sheds located in WA mining centres, including Kalgoorlie, Port Hedland, Wyndham and Kwinana – representing approximately $90 million in assets – and its truck fleet, which includes around 40 double road trains.
“These facilities are close to transport infrastructure, SSAN manufacturing and processing facilities and meet all regulatory and compliance requirements,” said Qube managing director Paul Digney.
While Qube currently has SSAN capabilities on the east coast, this move now expands that into the west.
Qube told Big Rigs that with the acquisition, it will retain the existing Coleman’s workforce, who will now become employees of Qube.
Coleman’s was a family owned and operated business, founded by brothers Robert and Henry Coleman. They had put the business on the market previously in 2015 but failed to secure a buyer.
For Qube, however, the business was a “natural fit”.
The acquisition came into effect this week, on Wednesday August 21, with a transitional period to follow.
In an ASX announcement released yesterday, Qube revealed a strong 2023/34 financial year, with underlying revenue growth of around 17.2 per cent to $3.5 billion and underlying earnings (EBITA) growth of 13.6 per cent to $318.4 million.
Commenting on the Coleman’s deal, Digney added, “This acquisition provides Qube with a platform to enter the Western Australia SSAN supply market and to use its financial and operational capabilities to invest to support further growth and deliver operational improvements for this business.”
[signup]
The post Qube acquires WA operator in $119 million deal appeared first on Big Rigs.