The deal now gives Prixcar national coverage of the vehicle services sector and introduces heavy truck and machinery logistics to its existing car-centric business.
But as part of the transaction, Wallenius Wilhelmsen Logistics (WWL) will take a 20 per cent interest in Prixcar and have board representation.
Prixcar Services CEO Alex Milan told GoAutoNews Premium that there were a lot of synergies between the two companies.
“It allows us efficiencies for our customers throughout Australia and means we can expand our business reach,” he said.
“We are now planning to increase our presence in some areas,” he said but was not specific about target regions.
Mr Milan said the relationship between WWL’s offshore business and Prixcar would strengthen but added that Prixcar would not deal exclusively with WWL.
“We deal with all the shipping lines and we will continue to do that on behalf of our customers.”
Prixcar was 50 per cent owned each by Toll PDI Australia (trading as Toll Transport) and K-Line Automotive Logistics. Mr Milan said that equal shareholding would now be diluted to allow for WWL’s interest.
The joint business is expected to have an annual turnover in excess of $250 million and a staff of more than 1000 people.
The deal does not include WWL’s offshore activities or its terminal assets, including the Melbourne International Ro-Ro Automotive Terminal known as MIRRAT.
WWL president and CEO Craig Jasienski said in a statement that: “This transaction and our new partnership with the Prixcar Group will increase the scale and geographic reach of our land-based activities in Australia, providing our customers with an enhanced product.”
Prixcar started in 1988 as a car transporter service and now operates interstate with expansion into customs services, marine and insurance surveys, vehicle storage and relocation. It also has a race-car transport service.
WWL is a Norwegian-based global shipping and logistics company with more than 50 vessels supplying 3.7 million movements of goods each year that operate out of 27 countries.
In Australia, WWL has operated land-based logistics for 18 years and has four locations that manage the movement of heavy freight. These operations will be folded into Prixcar, along with WWL’s ownership of the manufacturing arm of SRO Services that provides design, manufacture and installation of custom equipment for vehicles, including truck trays, service bodies, tool boxes and safety equipment.
By Neil Dowling
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