07.05.2007

Moorland goes to Boom

Boom Logistics, the fast growing Australian crane rental business has announced that it has reached agreement to acquire Moorland Hire, a regional access rental business.

We understand that Boom trumped Force Corp, the smaller up and coming rental consolidator that came out of Australian Skyreach which at one point thought its acquisition of Moorland was ‘in the bag’.

Boom Logistics paid $30.5 million ($25/£12.5 million) for Moorland, a 40 year old business and one of the largest access equipment suppliers in Victoria, with a fleet of over 500 lifts.
Moorland operates from three depots in Springvale, Morwell and Sale

Boom’s CEO elect, Mark Lawrence said that he was delighted with the acquisition.

“Moorland Hire is a quality business which has a demonstrated track record of solid growth, the business fits well with the existing Boom/ Sherrin Hire presence in Victoria, enhances the customer base- service offering, and aligns with Boom’s broader growth plans”.

While precise details of the deal were not disclosed Boom says that it has paid a multiple of 5.4 times EBITDA and that the deal will be accretive in terms of earnings per share from the outset,

Completion will occur on 31 May, 2007