Daniel Smith buys Verticon NZ fleet
04 March 2008
New Zealand-based Daniel Smith Industries Ltd, has bought Verticon New Zealand's fleet of crawler and wheeled mobile cranes for NZ$13 million (US$10 million).
The sale included all New Zealand-based crawler cranes and mobile cranes, ancillary equipment and hire agreements and concludes Verticon's exit from the New Zealand market.
It is a “buy back” deal in that, in December 2005, Verticon Group Ltd (the public listed company based in Melbourne, Australia) bought the crawler, mobile and tower crane rental business from Daniel Smith Industries Ltd (DSI) for NZ$41 million (US$32 million).
Rangiora-based civil engineering contractor DSI is owned by Daniel and Annette Smith. Daniel Smith said that it will be business as usual, with all staff re-employed by DSI. Operation will continue from Rangiora and with a smaller depot in Auckland. The Verticon crawler and mobile fleet will be integrated with the DSI construction and rentals operation on projects in New Zealand, Australia and the Pacific Islands.
Daniel Smith said he will retain his 5% ownership in Verticon Group Ltd – Australia, and will continue to supply heavy lifting cranes and equipment to Verticon Group throughout Australia.
Andrew Torrington, Verticon managing director, said the sale was part of Verticon's strategy in recapitalising the Group that will enable Verticon to invest in new tower cranes and hoists in Australia. Verticon will continue to operate and grow its fleet of more than 100 tower cranes and 65 hoists in Australia.
In December 2007 Verticon sold its New Zealand tower crane and hoist division to Lewis Equipment of Texas, USA, for NZ$14.99 million (US$12 million) See IC January 08 News.