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Marstel Terminals secures strategic global partner for growth

Wednesday 15 June 2011, 10:06PM

By trio communications

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A majority interest in the transtasman bulk liquid storage company Marstel Holdings Pty Limited (Marstel Terminals) is being acquired for an undisclosed amount by Stolt-Nielsen Limited (Oslo Børs: SNI), a global provider of integrated transportation and storage solutions for chemicals and other bulk liquids.
Marstel Terminals’ New Zealand founders Graham and Anne Catley are to retain a 30% ownership. They will continue as executive managers.

As part of the transaction, Australian mid-market private equity firm Propel Investments has agreed to sell its 45% ownership interest in the company.

The new ownership structure brings together the regional market experience of the Catleys and the global presence and financial strength of Stolt-Nielsen.

“We are pleased to be adding these terminals to the company's global storage and distribution network, complementing our regional tanker operations in Asia Pacific," Niels G Stolt-Nielsen, Chief Executive Officer of Stolt-Nielsen, says.

Mr Catley says he is looking forward to working with people who understand the bulk liquid storage business and have such complementary operations.

“For our staff and customers this is a real positive, as we have a shared vision for the future,” Mr Catley says.

The shareholders intend to grow the business by maximising opportunities at existing terminals and by developing new sites in Australia and New Zealand.

Marstel Terminals, which began in New Zealand in 1987, is today a leading operator in the transtasman bulk liquids market. Its services include the storage of bulk and packaged hazardous and non-hazardous products, drum filling and contract blending. Liquids stored include petrochemicals, petroleum fuels, biofuels, lubricants, bitumen and vegetable oils.

Marstel Terminals operates at nine locations, consisting of prime sites in Australia at Coode Island and Altona (Melbourne), Port Alma (Queensland), Bell Bay (Tasmania), and in New Zealand at Wynyard Wharf, Freeman’s Bay and Gabador Place (Auckland), Mount Maunganui and Bluff.

Stolthaven Terminals operates a global network of eight bulk liquid storage terminals in key markets worldwide, with a combined total storage capacity of 2.9 million cbm. A ninth terminal is currently under construction in Singapore.

Albin Kurti, a Managing Director at Propel and a director of Marstel, says it has been a pleasure working with the team during an important growth phase in Marstel’s history.

“I would like to thank Marstel’s dedicated staff, particularly the management team led by Graham Catley, Anne Catley and Tim Gunning, for their vision and leadership and I wish the Company well with its next stage of development under its new ownership structure,” he says.

The acquisition is subject to government approvals.

Marstel Terminals was advised on the conduct of the sale process by Greenstone Partners, Minter Ellison and Greenwood & Freehills. Cranleigh Merchant Bankers provided advice to the Catleys around the selection of the new partner and negotiation of the continuing management arrangements with Stolt-Nielsen Limited.