Oil and gas logistics firm Asco Group has taken a 60% stake in Australia’s Bonnie Rock Transport and is working on two more acquisitions.
Derek Smith, Aberdeen-based Asco’s chief executive, said the Bonnie Rock deal was a key part of the “jigsaw” of the firm’s global expansion.
Asco has options to buy the rest of Bonnie Rock, which is based near Perth in Western Australia and employs 160 people in its onshore and offshore operations down under.
Its services include warehousing and distribution, container transport and freight distribution across Australia.
The company – founded in 1998 – has depots in Perth, Dampier, Dongara and Broome in Western Australia, as well as Chinchilla in Queensland.
Asco’s initial majority stake cost it £15million, funded from a recent £40million finance package from a banking syndicate led by HSBC.
Mr Smith said: “We are focused on finishing the geographic jigsaw.
“The addition of Bonnie Rock to our portfolio means that we can support offshore and onshore customers through the entire supply chain cycle.
“In addition, Australia’s onshore Perth, Canning Basins are the focus of growing international attention due to their conventional and now unconventional oil and gas.
“This gives us some fabulous opportunities to be involved with some leading operators who are investing millions of dollars to explore these areas”.
Matt Thomas, the firm’s chief executive for Australasia, added: “Bonnie Rock Transport is a perfect fit with Asco Group’s international activities and our expansion plans.
“Asco is building a significant footprint in Australia, with our management of the Darwin marine supply base, our acquisition of Brisbane-based global inventory and asset management business Oniqua in 2012.”
Asco’s latest push into the Australian market comes after the company more than halved losses last year. Annual results just released by the group show pre-tax losses narrowed to £5.41million, from nearly £13.6million previously.
The firm’s 2012 financial performance was affected by costs from a string of acquisitions, while a change in the reporting method has also had an impact on year-to-year comparisons.
Asco highlighted a 158% increase in operating profits to £14.8million last year on total revenue up 13.3% to £768.6million.
A £60million-plus contract won during the year to provide supply base services at the port of Mtwara in Tanzania gave the firm a firm foothold in east Africa.
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