Acquistion of Sydney-based Custom Coaches estimated will take annual revenues past £500 million
Bus manufacturer Alexander Dennis Ltd (ADL) has acquired an Australian coach builder in a multi-million pound deal.
The value of the deal has not been disclosed, though ADL will take 100 per cent control of Sydney-based Custom Coaches, one of Australia’s largest bus manufacturers with a 24 per cent share of its home market.
Custom Coaches employs around 400 people at manufacturing sites in Sydney, New South Wales, and in Adelaide, South Australia, and generates annual sales of around £55 million (AUS$ 90 million).
Falkirk-based ADL's chief executive, Colin Robertson, said: “This is another significant step in our strategy to diversify and grow the business.
“It will see our group turnover increase to around £500 million per annum - a three-fold multiple in just five years - and position us well to become a major player in the southern hemisphere.”
He added: ““This is the beginning of an exciting new chapter for both Custom and ADL.
“It will build on the progress ADL has made in New Zealand in the last two years where our manufacturing partnership with Kiwi Bus has established us as market leader and a major supplier to cities such as Auckland and Wellington.”
Scottish Government Finance Minister John Swinney said: “Scotland is recognised internationally for its excellence in engineering and it is fantastic news that Alexander Dennis, one of Scotland’s leading manufacturers, is establishing new operations in North America and Australia.
“The global economic downturn shows how interconnected world markets are and it is welcome news that, despite the economic climate, an indigenous company like Alexander Dennis has continued to grow and capitalise on new opportunities in overseas markets.
This announcement is testament to the skills and work of the company’s 900 Falkirk employees and I am confident the strengthening of this business will benefit the economy and build on Scotland’s attractiveness as a place for international trade and investment.
“Investment decisions of this type position Alexander Dennis as a global leader and Scotland should take great pride in the significant position this Scottish company now has in the world of manufacturing.”
Alexander Dennis was bought out of administration seven years ago by a Scottish business consortium of Stagecoach chief executive Sir Brian Souter, his sister Ann Gloag, metals millionaire Sir David Murray and merchant banker Sir Angus Grossart.