LINX Cargo Care Group agrees to acquire Pedersen

(Posted on 26/07/18)

LINX Cargo Care Group, and its subsidiary C3 Limited, has announced that it has been successful in its bid to acquire Pedersen Group, a market leading provider of wood chipping and woodyard management services to pulp and paper mills, and forest owners in Australia and New Zealand.

Pedersen Group handles over 8.3 million tonnes per annum of wood fibre across its operations, in the form of logs, wood chip and hog fuel. The company employs 140 people across Australia and New Zealand and has an existing joint venture with C3 Limited, which provides wood yard management services to customers.

LINX Cargo Care Group is delighted to enter into a purchase agreement with Pedersen Group and take the next step in the evolution of both companies, which is expected to be completed mid-August.

Pedersen Group CEO Gavin Hudson said the conditional agreement reached this week will provide the Pedersen Group with an aligned and committed long-term owner, which will enable Pedersen Group to continue to focus on providing critical services to its customers.

“We are delighted to finalise this agreement with LINX Cargo Care Group. The acquisition of Pedersen Group by LINX Cargo Care Group will provide long-term stability for our employees and customers, and the operational and financial capacity to allow our business to pursue its growth aspirations”, Mr Hudson said.

Anthony Jones, Group CEO for LINX Cargo Care Group and Chairman of C3 Limited said the acquisition of Pedersen Group brings a complementary service offering to customers, including a highly skilled workforce who specialise in wood chipping and woodyard management.

“LINX, C3 and Pedersen share a long and rich history in the forestry industry. Our combined expertise and experience will provide an enhanced customer offering, further access to capital, and the opportunityto collaborate and collectively grow into the future,” he said.

“We are very excited to welcome Pedersen Group to LINX Cargo Care’s group of companies. Pedersen’s will enable our organisation to grow its services to forest owners and wood processing businesses. In addition, Pedersen’s capabilities and services complement C3’s existing customer offering and willextend our reach to a customer base in diversified global markets.

“The synergies and strategic alignment between Pedersen’s and C3’s forestry business is significant. Importantly, our company values are closely aligned, and we very much look forward to welcomingPedersen’s talented and highly skilled workforce to the team,” Mr Jones said.

Pedersen Group will continue to operate independently under the Pedersen brand following the completion of the acquisition, and all Pedersen employees will be retained by the new owner.

The Pedersen name has been synonymous with forestry processing solutions for nearly 40 years. Just 10 years after the company was established to produce roundwood for New Zealand Forest Products, the business expanded to include chip mills,supplying high quality wood chip to New Zealand’s major pulp and paper companies. Pedersen prides itself on being one ofthe only company’s in the world to successfully implement and run in-line to pulp mills, and have earned the reputation as‘operator of choice’ for innovative capital solutions. Pedersen employs more than 140 people across Australia and New Zealand and handles over 8 million tonnes of fibre annually for major global forestry organisations and pulp & paper mills.

LINX Cargo Care Group brings together the capabilities of four market-leading operations built on over 100 years of port and logistics experience. Together, LINX, Autocare, C3 and Geelong Port employs more than 3,800 highly-skilled professionals in 60 sites across Australia and New Zealand. The Group services a diverse range of industries right across the region, from agriculture, oil and gas, aluminium and automotive to marine, mining and resources, food and beverage and forestry. Every year, the LINX Cargo Care group of companies handles more than 11 million tonnes of bulk products, almost 2 million tonnes of steel and more than 30 million logs. They also transport more than 1 million new vehicles across Australia from shore todoor and process more than 500,000 vehicles for many of the region’s largest fleet operators. Owned by global alternative asset manager Brookfield and its investment partners (GIC, bcIMC, QIA), LINX Cargo Care Group has the regional capabilities and global connections to develop innovative, integrated supply chain solutions with sustainable growth opportunities.

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