The announcement, which comes one day before AHG’s annual general meeting, follows years of undulating performance from its logistics division and numerous attempts to restructure its business model.

AHG sold the division for $400 million – about $280 million in cash and about $120 million in finance lease liabilities taken up by the buyer. CC Logistics Australia is a division of HNA Group (International) Company Ltd.

HNA is a Hong Kong-based global financial and leasing company with more than $90 billion in annual revenue. It is China’s biggest non-banking leasing company and is mainly involved in the logistics and transport industries with subsidiaries including Fleetcare, FleetProtect and FleetIntelligence.

HNA also owns more than 400 hotels in 29 countries under the NH Hotels and Hesperia Resorts brands, casinos and fast-food restaurants; stockbroking businesses; and has interests in tyre and trailer manufacturers.

In a statement to the Australian Securities Exchange this morning, AHG said the sale followed an “unsolicited offer at a value that reflects the business’ market leading position and the upside from its profit improvement initiatives”.

“Proceeds will provide AHG with additional financial capacity to grow its automotive retail operations, as well as flexibility to undertake capital management initiatives,” it said.

The sale comprises Rand, Harris, Scott’s and JAT Refrigerated Logistics.

AHG chairman David Griffiths, said his company had previously announced it would “explore all opportunities to maximise shareholder value from the Refrigerated Logistics business”.

“Although the restructuring initiatives are delivering a significantly improved financial performance, the sale provides AHG with the opportunity to realise a certain value for shareholders that reflects this continuing improvement,” he said.

“The sale also provides AHG with both the resources for further growth in our automotive operations and scope for capital management.”

HNA indicated to AHG that it has a commitment to the refrigerated logistics sector and AHG CEO and managing director John McConnell said the buyer would “continue to deliver quality services to customers”.

“We strongly believe that the business will have a very positive future under its new owners,” he said.

AHG Logistics CEO Stephen Cleary will remain with the business as CEO under the new owners together with the existing management team and employees.

Transitional services including IT and head office support functions will be provided by AHG to Refrigerated Logistics for up to 12 months after the sale and AHG has agreed it will not operate a refrigerated logistics business for a period of five years from that date.

AHG, which intends to use the sale proceeds to continue to grow its Automotive Retail operations, expects the transaction to be completed in the first half of 2018.

The refrigerated logistics division developed national cold storage facilities and a transport fleet over the past five years.

Late last year it was the subject of a restructuring program aimed at improving its operating efficiency through investment in information technology and integration of the three operating businesses.

Mr McConnell said the sale realises a value that would be expected from the efficiency initiatives.

In the last financial year ending June 30, 2017, Refrigerated Logistics generated operating earnings (EBITDA) of about $35 million.

A more accurate reflection of its improving performance was its EBITDA of $10.8 million in the most recent July-October 2017 period, a rise of 46.6 per cent from the same quarter in the 2017 financial year.

In this sale quarter, AHG’s automotive division was down 10.6 per cent; Other Logistics (including its motorcycle wholesale business) fell 14.1 per cent; and its contributions from its small property investments was down 54.9 per cent.

By Neil Dowling