Ausdrill has sold its DT HiLoad truck tray business to WA-based Schlam Engineering.
It announced its intention to divest the tuck tray manufacturing business in early January, at the time stating the move “aligns with the Company’s strategy to divest non-core and underperforming assets”.
Now Schlam has acquired the business.
“DT HiLoad has synergies with Schlam Engineering in that it is a specialist in design and manufacture of dump truck bodies and mining buckets,” Schlam managing director Ryan Schlam said.
“Schlam has been experiencing a period of organic and acquisitive growth, we saw this as the positive next step.”
According to Ausdrill managing director Ron Sayers, the sale includes a $2.6 million up front, with additional steel and tray inventories on a fixed price, consignment basis over three years.
The sale includes all brands, patents, and material fixed assets related to the DT HiLoad business, with any residual inventories and non-critical business assets disposed of via auction or by sale to third parties.
“The sale is expected to generate total proceeds of up to $8 million over three years, resulting in a small book profit for the group,” Ausdrill said in an official statement.
“This sale concludes the shutdown of DT HiLoad that was announced in January 2016, and aligns with our strategy,” Sayers said.
“Importantly, the sale to an industry participant will consolidate the activities of both Schlam and DT HiLoad for the benefit of all stakeholders.”