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BALLARAT truck trailer and parts supplier MaxiTrans' $20 million buy of
Gladstone-based Queensland Diesel Spares may not be its only acquisition using
its spruced-up balance sheet.
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MaxiTrans' managing director Michael Brockhoff had been so busy
yesterday, he had not seen the 8 per cent rise in the group's shares, which
closed 3.5¢ higher at 46.5¢ after the deal was unwrapped.
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Asked by Insider why he was using debt rather than equity - especially
given the MaxiTrans share price has gone from 20¢ to 46¢ since mid-2011 -
Brockhoff said that having cleaned up his balance sheet in recent times, he had
no qualms about borrowing to do the acquisition.
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QDS has turnover of $40 million a year, compared to MaxiTrans' total of
close to $300 million these days. The Queensland group, which is debt free,
made $4.5 million before interest and tax on a ''normalised'' basis in the
latest year.
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Brockhoff, having dipped a toe in the water and noting that QDS is
predominantly servicing the resource-heavy Gladstone region (it is in Brisbane
and the Gold Coast, too), is looking to see what gaps he can plug in his
group's national footprint. No doubt Queensland, and Western Australia, will
continue to be on the radar.
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