Qube Logistics has taken ownership of Western Australian company Coleman’s Transport in an approximately $119 million purchase.
The announcement was made in Qube’s recently released 2024 financial report, where it revealed the acquisition was finalised on August 21, and includes high security storage sheds in the mining centres of Kalgoorlie, Port Hedland and Wyndham, as well as Kwinana.
The incorporation of Coleman’s Transport into Qube also includes specialised licensed infrastructure that can support the security sensitive ammonium nitrate (SSAN) supply chain.
“The acquisition of Coleman’s provides Qube with a platform to enter the Western Australia SSAN supply market and use its financial and operational capabilities to invest to support further growth and deliver operational improvements for this business,” the report states.
“These facilities are close to transport infrastructure, SSAN manufacturing and processing facilities and meet all regulatory and compliance requirements. Colemans also has a large fleet of emulsion tankers.
“SSAN is the predominant explosive and a key input used in the mining of a range of commodities including iron ore, copper, lithium, nickel, zinc, metallurgical coal and thermal coal, as well as by the quarrying industry.
“Qube is well diversified with Western Australia being the largest single region representing 26.7 per cent of total divisional revenue.
“The acquisition is expected to be modestly earnings per share (pre-amortisation) (EPSA) accretive and exceed Qube’s minimum ROACE target on a proforma basis, inclusive of synergies. These synergies are expected to be partly realised in the first year of ownership and fully realised within 24 months postacquisition.
“The acquisition is a continuation of Qube’s successful strategy of using targeted acquisitions to acquire businesses and assets that enhance its service capabilities and then investing further in the businesses to support its customers.”
In FY24, Qube reported a 17.2 per cent underlying revenue growth of $3.5 billion when compared to FY23, with underlying earnings (EBITA) growing by 13.6 per cent to $318.4 million.
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