Boom Logistics buys James Equipment

Boom Logistics Ltd has paid $60m for the James Cranes fleet.

The acquisition was settled on August 1 and was represented by a payment of $54m cash and $6m worth of shares in Boom Logistics. “The $54m was funded from internal reserves, largely created by an earlier issue of shares,” said Boom Logistics CEO Rod Harmon.

The purchase covered James' dry hire fleet and represented the 15th acquisition since Boom Logistics became a public company and listed on the Australian Stock Exchange in October 2003. At that time, the company's annual turnover was around $73m. It also represents the third acquisition for the 2006 year.

The James business will add a further annual turnover of around $44m (based on the actual turnover for financial year 06). The Boom fleet now exceeds 500 cranes, putting the fleet size well in the top sector on the world list of crane hire companies. The fleet is exclusively mobile cranes; no tower cranes are involved.

Boom Logistics will continue to look for further acquisition opportunities as well as continuing to invest for further organic growth. There is still in excess of 1000 crane hire companies in Australia,” Harmon said.

James Equipment is the exclusive Australian agent for the Japanese brand of Tadano cranes. In addition to selling those, it also has a wide range of used cranes from international manufacturers including Demag, Kato, Liebherr, and Kobelco.

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Boom Logistics buys James Equipment

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