Boom sells tower crane division
12 October 2011
Australian crane rental and transport major Boom Logistics has sold its Victorian tower crane division for AU$7.50 million (US$ 7.58 million) to Guy Caelli.
Boom said it was a non-core asset and that net profit from the sale will be AU$3 million (US$ 3.03 million). It will be owned by Guy Caelli Holdings and will trade as General Cranes.
The sale includes 34 Favco and Favelle Favco diesel luffing tower cranes, a Liebherr LTM 1200/N all terrain crane, a Kato NK 500 truck crane, plus a Grove rough terrain yard crane, forklifts, trucks and other vehicles, as well as associated equipment. The tower cranes range from an eight year old M380D back to STD 1500s from the 1970s. A large proportion of the fleet is M300D and M310D models from the early 1990s.
"This sale is another positive step in aligning Boom's core business with our key markets, particularly in resources and energy. The transaction releases capital previously allocated to a non-core business for investment in higher returns markets," said Brenden Mitchell, Boom CEO, in a statement.