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Qube Holdings (ASX: QUB) has today secured a 50 per cent stake in New Zealand-based shipping company Pinnacle, while also fully acquiring specialist bulk logistics provider Kalari Proprietary as it looks to diversify its global footprint and strengthen local operations.
Both deals, collectively worth $145 million, will see Qube enter the New Zealand container logistics market for the first time, in addition to deepening its exposure in Queensland and South Australia.
Employing around 300 staff, Wellington-based Pinnacle Corporation offers container storage and handling, refrigerated container maintenance, and transport services as well as warehousing for global customers.
The company operates both port-based and stand-alone facilities in nine locations throughout New Zealand under its wholly-owned Specialised Group and MetroBox brands.
Qube managing director Paul Digney said the transaction would provide the company with a unique opportunity to gain initial exposure in the New Zealand container logistics market.
“I am very pleased that Qube has acquired a 50 per cent share in this very well-regarded and established player in New Zealand’s freight and logistics sector, with a high-performing and quality workforce,” Digney said.
“This joint venture is consistent with our strategy for growth and geographic diversification within Qube’s core strategic focus, and builds on Qube’s existing port logistics presence throughout New Zealand, under the ISO brand.”
Pinnacle managing director Grant Tregurtha added the joint venture was a significant and exciting opportunity that would result in a strong and dynamic presence in the New Zealand market.
“The combination of strengths from both companies will better serve customers, promote innovation and provide greater opportunities for future growth and expansion,” Tregurtha said.
Founded in 1976, Kalari Proprietary Limited - which is owned by Swire Investments (Australia) Ltd – is a logistics provider to the Australian mining and resources industry, specialising in bulk haulage.
Based in Port Melbourne, the company services a range of customers with significant mining operations, predominantly across Queensland and South Australia.
Digney said Kalari’s operations were complementary with Qube’s existing bulk mine to market and that the acquisition offered a number of synergies, as well as an opportunity for Qube to strengthen the Kalari offering through its rail and port infrastructure.
“Kalari is a natural fit for our business, providing us with an excellent opportunity to expand our inbound mine resupply services, and opening new markets and regions for Qube, including in future-focused critical minerals,” Digney said.
“For over 45 years, Kalari has established and maintained a strong customer base and built a high-performing team with a strong culture and similar values to Qube.”
Kalari managing director Peter O’Shannessy added he was confident the company’s track record of success would continue under Qube’s ownership.
“I am very pleased for our people and our customers that we’ve been able to reach an agreement for Qube to acquire Kalari and I am confident that the business will make a significant contribution to the ongoing success of Qube,” O’Shannessy said.
The acquisition of both companies will be funded via Qube’s existing undrawn debt facilities in Australia and New Zealand.
Shares in QUB closed up 0.33 per cent today to $3.08 per share.
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