NFC buys into American market
Page 6
If you've noticed an error in this article please click here to report it so we can fix it.
THE NATIONAL Freight Consortium's long promised break into the North American market has taken place. It has bought a £30m turnover company which, it says, has scope for future development.
It has paid an undisclosed sum for Merchants Home Delivery Service, a family-owned contract 'carrier based at Oxnard, Califorwhich has a substantial distribution business for furniture and timber.
The company, which employs 450 and has branches in 30 US states, delivers furniture from department stores to customers' homes, is developing a timber delivery service for a Texas company, and a package delivery service based in Los Angeles.
According to NFC, there is "considerable potential for further development" of the Merchants business.
A North American holding company, NFC International Holdings (USA) Inc, headed by . managing director Ted Wall has been established. It expects .early approval of the Merchants acquisition by the California State Public Utilities Commission, which scrutinises takeovers of companies like transport operators.
A move into the United States has been expected for some time, and follows the 1982 move into the Australian market by the takeover of Downard-Pickfords, a company in the hands of a receiver at the time. There also is a Pickfords partnership in Hong Kong. According to Mr Wall, Merchants employees will be offered a chance of buying shares in the business, provided NFC can satisfy stock exchange requirements.
The business became available after its founder, Bob Hayes, died in September last year, but it is not yet certain whether a British manager will be put in charge. But Mr Wall confirmed that an NFC finance manager would be put into the company.
Other United States transport companies may be sought by NEC later this year, when Mr Wall returns there. The Consortium is planning to announce its move into another foreign country within the next week. NFC chairman Sir Peter Thompson has been inspired by the Transport Development Group's investments in Australia and North America, and wants to expand the Consortium's activities to diminish the risk of it being damaged by a recession in Britain.