Boom Logistics buys another fleet

Australia's largest crane rental house, Boom Logistics, confirmed the acquisition of Camilleri Industries Australia on 14 March. The purchase of the Camilleri fleet cost AUS$27.5 million (US$20 million) and is Boom's fourteenth acquisition in six years. Last year Boom bought the fleets of Sherrin Hire, Cameron Cranes, Brambles Port Hedland Cranes and Carrington Steel (IC August 2005 News, p9).

Based in Mackay, Queensland, Camilleri operates 50 cranes, including 35 to 200 tonne capacity all terrains, a range of 16 to 20 tonne capacity Terex-Franna industrial cranes, 50 tonne capacity RTs and 50 to 100 tonne capacity crawlers. Camilleri primarily services coal mines in the Mackay and Bowen Basin regions, although it recently invested in a small number of tower cranes to work in the growing residential building sector. Also included in the purchase is Camilleri's fleet of 90 forklifts. Camilleri is expected to generate revenue of $18.9 million in the 2006 financial year.

Boom already operates 54 cranes in the Bowen Basin and managing director Rod Harmon said the purchase made good sense, “The acquisition of Camilleri represents a strong strategic fit with Boom and consolidates Boom's position as the premier lifting solutions company in the high growth Bowen Basin coal region.

“Importantly, it provides ready made access to assets and labour to capture an increased market share.”

Further acquisitions may be on the horizon with the news that Boom is to undertake an equity raising of AUS$70 million (US$51 million) through a placement of newly available shares.