Barloworld Limited - Barloworld Expands Freightliner Operation In Southeast
Release Date: 24/03/2003 12:01:25 Code(s): BAW
Barloworld Limited - Barloworld Expands Freightliner Operation In Southeast
United States
Barloworld Limited
(Incorporated in the Republic of South Africa)
(Registration no. 1918/000095/06)
JSE code: BAW
ISIN code: ZAE000026639
BARLOWORLD EXPANDS FREIGHTLINER OPERATION IN SOUTHEAST UNITED STATES
International industrial brand management company Barloworld Limited, has
announced the acquisition through its Freightliner division of 100% of the stock
of Northwest Arkansas Truck and Equipment Inc. (NWATE) of Springdale, Arkansas,
United States, for US$5 million (R40-million). NWATE was privately owned.
NWATE operates two Freightliner dealerships in Springdale and Van Buren,
Arkansas. This acquisition is in line with Barloworld"s intention to grow the
Freightliner business. With sales of over $62 million (R496-million), this
dealership adds to the seven other Freightliner dealerships Barloworld owns and
operates in Tennessee, Mississippi and Arkansas.
Among NWATE"s customer base are some of the largest listed transport companies
in the US including JB Hunt Transport Services, USA Truck and P.A.M.
Transportation Services. Northwest Arkansas is home to Wal-Mart Stores and
Tyson Foods who own two of the world"s largest private (in house) truck fleets.
With its location near the center of the United States, along the I-40 corridor,
the area is also the headquarters of many other transportation companies and the
location of numerous distribution centers. These factors combine to make this
territory strategic to Barloworld Freightliner"s expansion.
Scott Simmons, President of Barloworld Freightliner, Memphis Tennessee
commented:
"Our firm is anxious to build on the excellent reputation of Northwest Arkansas
Truck and Equipment. We look forward to adding this fine organization to
Barloworld and feel we will be able to obtain significant synergies with our
existing Freightliner businesses."
This operation will be run by Barloworld"s existing Arkansas management team
based in Little Rock. Plans are to retain both new locations and virtually all
the existing 100-plus employee base.
Barloworld CEO Tony Phillips said: "This deal is part of our strategy to grow
our global footprint in the things we do well. We are focussed on growing our
business and increasing the value we create for all our stakeholders. The deal
has the full support of Freightliner LLP which is a DaimlerChrysler subsidiary.
It is a further addition to our already extensive relationship with
DaimlerChrysler which exists in the United States, South Africa and Australia."
He added, "The acquisition will be expected to exceed the company"s cost of
capital hurdle of an 8% real return measured by cash flow return on investment."
24 March 2003
Ends
For background information please contact Mark Drewell, Head of Corporate
Communication at Barloworld Limited on (011) 445 1204 or visit
www.barloworld.com
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