| Fri 3 May 2002, 0:00 | | Trencor In R1 Billion Beer Keg Deal With Top Uk Br |
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May 3, 2002
In a R1 billion deal ranked as one of international industry's major mobile
asset management projects, Trenstar Inc, a 61% US-based subsidiary of
Trencor Ltd, has bought the entire beer keg fleet of Scottish Courage
Limited, the UK's leading brewer and part of Scottish & Newcastle plc, one
of the largest brewers in Europe.
It will now make available and manage the fleet of 1,9 million kegs for
Scottish Courage under an ongoing 15-year container services agreement, Neil
Jowell, Trencor's executive chairman, said today. "Scottish Courage, as
acknowledged leader in keg tracking and management systems, is a natural
choice of partner for expanding TrenStar's asset and information and
management solutions into this innovation in keg fleet management.
Hennie van der Merwe, Trencor executive director, said a special purpose
entity owned 75% by TrenStar bought the fleet and ancillary equipment from
Scottish Courage. The acquisition was 100% funded by a major UK bank, ring-
fenced to the special purpose entity and thus without recourse to TrenStar
or Trencor.
"The transaction is the first of its size and nature in the UK," Van der
Merwe said. "It establishes TrenStar as a significant provider of
financial, technology and management services solutions in the European
brewing industry.
"TrenStar views the transaction as a springboard for an industry-wide pool
of beer kegs, owned and managed by TrenStar companies, and used by UK and
European brewers, thus enabling them to reap the cost benefits of greater
efficiencies and economies of scale. Scottish Courage fully supports this
concept and negotiations with other brewers are at an advanced stage."
Jowell said the transaction would not contribute materially to earnings in
the current year. It was however anticipated that the expansion of the
transaction into an industry pool of kegs would become a significant
component of the Trencor group's hard currency earnings, adding to that from
subsidiaries such as Textainer, the world leader in dry freight marine
container leasing.
Van der Merwe said the deal was an important validation of the TrenStar
business model of providing container management technology solutions and
operational services on a per use fee basis. "In terms of the agreement with
Scottish Courage, the fleet will be made available to the brewer on a "per
fill" fee basis. This new operating model represents a significant
improvement in efficiencies compared to the traditional "rent per day"
business model currently used by asset management providers."
TrenStar, which operates in the USA as well as the UK and Australia, and
Trencor Solutions in South Africa provide solutions for supply chain
execution, automatic data collection, management and integration of
returnable assets of the supply chain for the beverage, food, chemical,
automotive and other asset-intensive industries.
Trencor is in discussions with the JSE Securities Exchange South Africa as
to whether any disclosures under the JSE Listings Requirements are necessary
in respect of this transaction. Holders of securities in Trencor and Mobile
Industries Limited are advised to exercise caution in dealing in Trencor and
Mobile securities until these discussions have been completed.
ends
ISSUED FOR Trencor Ltd
BY De Kock & Kerkhoff Communication Consultants
INQUIRIES Hennie van der Merwe 021-4217310/083-255-6343
Mike Kerkhoff 021-424-5280
