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Centurion acquires Regal General Transport

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Centurion has signed a purchase agreement with K&S Corporation (ASX: KSC) to acquire Regal’s Transport business. Centurion will service Regal’s existing contracts and offer employment to Regal’s frontline staff, however Centurion will largely use its own modern transport fleet and infrastructure (trucks, trailers and depots) to service those contracts.

The transaction was negotiated and agreed after K&S completed a strategic review of its general freight business in Western Australia.

Centurion CEO Justin Cardaci said resource clients were demanding more and more efficiencies from their services providers, including logistics companies, and the increased scale that the acquisition of the Regal business provided would enable Centurion to remain cost competitive through better asset utilisation.

Justin Cardaci CEO Centurion

“Centurion’s business is focussed on Australia’s resource-rich areas, so we possess comprehensive knowledge and understanding of Regal’s Pilbara and Kimberley-focussed business, customers and routes,” he said.

“That knowledge and understanding of logistics challenges and opportunities in north-west WA is why the ability to purchase the Regal business appealed to Centurion. The additional scale will ensure Centurion can continue to be a strong service provider to the regional communities in which it operates, and can preserve the jobs of many Regal employees in a very competititve logistics market.
“The addition of Regal’s business ensures Centurion remains cost competitive while providing Regal’s customers with the industry-leading safety standards and customer focussed IT logistics that Centurion has built its reputation on.

“We are focused on seamlessly integrating the Regal business and staff into our company, with a particular focus on making sure that there is no impact on existing clients’ freight requirements. With the increased scale and efficiency the Regal acquisition will provide, Centurion is confident that it will meet and exceed client expectations.”

The transaction is expected to create additional flow-on benefits for Australian manufacturers. To service Regal’s customers, Centurion is expanding its current fleet of trucks, trailers and refrigerated vans, creating business and employment for the Australian trailer and refrigerated van manufacturers that supply Centurion.

Centurion plans to continue to operate Regal’s regular services to Broome, Derby, Karratha, Newman and Port Hedland.

The company is in the process of contacting clients serviced by Regal to discuss their haulage and logistics needs.

“As economic conditions in the WA resource sector improve, there is an increasing amount of project activity, and these additional resources will position us well to capitalise on this upturn,” Mr Cardaci said.

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