Automotive group AP Eagers has announced it will sell its AHG Refrigerated Logistics division to Anchorage Capital Partners for $100 million on a debt and cash free basis.
AHG businesses include Scott's Refrigerated Freightways, Rand, JAT and Harris refrigerated logistics, delivery and warehousing services.
On completion, AP Eagers will receive approximately $100 million cash proceeds, which will be used to repay all finance leases and hire purchase liabilities associated with AHG. The expected net debt reduction is $95 million.
AP Eagers CEO and MD Martin Ward said the sale was part of the company’s strategy to focus on its core automotive retailing business.
Ward said: “The transaction follows an extensive sale process to find a buyer for the business on the optimal price and terms. Anchorage is the ideal owner for the Refrigerated Logistics business and has indicated a commitment to continue to invest and grow the business. We believe that the business will have a positive future under its new owners.”
A statement on the AHG website said: “Anchorage represents an ideal owner, indicating its commitment to growing and continuing to invest in the refrigerated logistics business so we can continue to serve our customers.”
UBS and Luminis Partners acted as joint financial advisers to AP Eagers and AHG on the transaction, with Ashurst acting as legal adviser.
