Qube Logistics has announced it has reached a binding agreement to acquire resources logistics specialist Giacci holdings in a bid to expand the company's reach to Western Australia.

 

In announcing the acquisition, Qube described Giacci as ' well run, high quality business that operates nationally, with significant operations in Western Australia.'

 

Giacci has built its core business in the mining industry, specifically in mineral haulage and handling, providing mine to port solutions for the majority of its customers and in most instances, assuming full responsibility for the supply chain.

 

Giacci employs over 350 people, operates a fleet of bulk gandling equipment and has signed key strategic partnerships and joint ventures incorporating shipping and rail.

 

The purchase price is approximately $119 million of which around $18 million is deferred for two years and subject to adjustments based on the earnings of the business in the future. Additionally, Qube will assume net debt of approximately $26.6 million.

 

Qube will fund the acquisition through the issue of $20 million of new Qube shares to the vendor at an issue price of $1.4749 per share with the balance of the purchase price funded from Qube’s available cash and debt facilities.  It is currently anticipated that the acquisition will be completed during March 2012.  The acquisition is expected to be earnings per share accretive in the first full year of operations.

 

Maurice James, Managing Director of Qube said “The acquisition will enable Qube to provide a complete mine to port logistics solution covering transport, stockpile management and stevedoring.  This enhanced logistics capability should provide significant opportunities to expand the range of services offered by the Qube group”.