| Tue 16 Sep 2003, 16:05 | | TRENSTAR CLOSES US$34 MILLION IN FUNDING TO EXPAND |
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TRENSTAR CLOSES US$34 MILLION IN FUNDING TO EXPAND MOBILE ASSET MANAGEMENT
SOLUTIONS
TRENCOR LIMITED
Registration number 1955/002869/06
ISIN: ZAE000007282
JSE Code: TRE
MOBILE INDUSTRIES LIMITED
Registration number 1968/014997/06)
ISIN: ZAE000004610
JSE Code: MOB
TRENSTAR CLOSES US$34 MILLION IN FUNDING TO EXPAND MOBILE ASSET MANAGEMENT
SOLUTIONS
PRESS RELEASE
Trencor Limited"s 61% US-based subsidiary, TrenStar Inc, announced in Denver,
Colorado, today that it had raised US$34 million in its first institutional
round of financing, with just more than half of the funding coming from Carlyle
Venture Partners, the venture arm of The Carlyle Group, and the balance from
other strategic investors and Trencor Limited. With this funding the largest
shareholders of TrenStar are Trencor Limited with just over 50%, The Carlyle
Group with 20% and the Leede Family with 14%.
TrenStar"s business model combines radio frequency identification (RFID) and
container tracking technology with logistics services to provide better
visibility and control of a company"s mobile assets as they carry goods and
materials through the supply chain. TrenStar will devote portions of the
funding to growth initiatives including further IT development and additional
asset purchases from qualified companies seeking an outsourced solution for the
management of their mobile assets.
Carlyle Principal Anand Gowda said "TrenStar"s RFID and container management
technology initially caught our attention, but we quickly realized the potential
of the company"s business model. In our due diligence we found an experienced
management team adeptly introducing a way for companies to gain efficiency
through better management of their mobile assets. We expect the brewing, food
and beverage, synthetic rubber, automotive and air cargo business segments, in
which TrenStar has already established important positions, to continue to
benefit from the company"s value proposition and outsourced container management
services."
"TrenStar"s solution for the automotive, brewing and food industries in
particular is strengthened by the supply chain services heritage of the founding
companies including Trencor. We can now more aggressively develop our solutions
and services and expand into new markets" said TrenStar President and CEO Greg
Cronin. "Our new investors like the business model and recognize the talent we
have on staff. We are in a position to take a very strong leadership role in
the emerging mobile asset management industry."
"TrenStar has established itself quickly in several industries" said Trencor
Managing Director Hennie van der Merwe. "Our recommitment is a testament to
TrenStar"s vision of streamlining mobile asset management for one company and
then eventually pooling common assets within an industry to achieve significant
savings for all pool members. TrenStar"s execution of this business model has
proven to be a very attractive proposition to asset-intensive companies in a
variety of industries."
TrenStar offers these asset management solutions to companies invested in
containers that move raw materials, work-in-progress and finished goods through
the supply chain. TrenStar"s three-part solution includes asset management,
logistics services and RFID/container tracking technology and helps clients
reduce transportation and operating costs while streamlining supply chain
operations. Through TrenStar"s unique "pay-per-use" option, qualified clients
enjoy capital repatriation and avoid up front technology implementation costs.
TrenStar manages asset pooling operations in several industries, offering even
greater reductions in operating costs for companies that join the pool.
TrenStar and its affiliates focus on the brewing, food/beverage, chemical, air
cargo, automotive, health care, retail and other asset-intensive industries.
Scottish Courage Breweries, Carlsberg-Tetley Brewing Company Limited, Kraft,
Goodyear, Burberry and Prada Stores use TrenStar"s products and services.
Clients of TrenStar"s affiliates include ExxonMobil, Ford, Toyota,
DaimlerChrysler and Dow Chemical. Headquartered in Denver, Colorado, TrenStar
has offices in the United Kingdom, Australia and South Africa. On the Net:
www.trenstar.com
The Carlyle Group is a global private equity firm with more than US$16 billion
under management. Carlyle generates extraordinary returns for its investors by
employing a conservative, proven and disciplined approach. Carlyle invests in
buyouts, venture, real estate, high yield and turnarounds in North America,
Europe and Asia, focusing on aerospace and defense, automotive, consumer and
industrial, energy and power, healthcare, technology and business services,
telecommunications and media, and transportation. Since 1987, the firm has
invested US$9,2 billion of equity in 295 transactions. The Carlyle Group
employs more than 500 people in 12 countries. For more information on Carlyle
Venture Partners, visit www.carlyle.com
Enquiries: Neil Jowell, Trencor Executive Chairman
Telephone 021 421 7310
16 September 2003
Cape Town
Sponsor
HSBC
Date: 16/09/2003 03:54:55 PM Produced by the JSE SENS Department
