HW Richardson has announced its intention to acquire a 50% stake in the Dynes Transport group.
HWR chief executive Brent Esler said the move would realise significant benefits across their respective areas of specialised transport, particularly given their family ownership structures and company values. HWR had national interests in rural transport, petroleum distribution, ready mix concrete, aggregate and cement transport, and Dynes in dairy and forestry logistics, including specialised port material handling operations.
Esler said both businesses were focused on delivering game-changing transport solutions to their customers and working together would fast track development of new systems and solutions, and ensure efficient utilisation of assets.
The Dynes Transport group includes Dynes Transport Tapanui Ltd, Dunedin Carrying Company Ltd, port logistics company NFA Ltd, Bulk Liquid Solutions Ltd, with Full Fleet Services Maintenance Ltd and the Dynes stake in Icon Logistics Ltd. Under the joint venture agreement the operations of HWR’s Southern Transport Logging would be transferred into the Dynes joint venture company, and Dynes would also take a stake in HWR’s Hastings-based Farmers Transport Ltd.
Peter Dynes, managing director of the Dynes group, said the move was focused on the future potential the two businesses working together could achieve. He said the joint venture partners had a good track record in delivering innovative transport solutions, and combining their financial strength and industry knowledge would enable them to continue and accelerate the delivery of future innovation.
Dynes said the businesses’ cultures and values were aligned, with both businesses being family-owned and having strong Southern roots. He would continue to lead the Dynes businesses under the new structure and operationally it would be business as usual.
The transaction is undergoing due diligence review and should be completed by 1 November 2016.