MTA Pocket‘s $36 Millon on the Sale of VTNZ
Motor Trade Association has announced it has reached an agreement to sell 60 percent of its shareholding in VTNZ to DEKRA SE, an international testing, inspection and certification specialist.
Vehicle Testing New Zealand started its life in 1994 as a State Owned Enterprise. It was privatised in 1999 and sold to the Motor Trade Association.
The company decided to re-brand in 2004 and simplify the name to a much more succinct VTNZ.
In the same year they expanded the business through the acquisition of On Road New Zealand, a 14 stations /250 staff campany, increasing VTNZ's coverage to 75 testing stations nationwide with staff numbers close to 1,000.
By 2008 the On Road branding was replaced with the bright orange testing stations and the VTNZ name.
Some business commentators have claimed that VTNZ didn‘t have the right owner and that a prudent decision for the MTA would be to divest the asset to an owner that could realise its true financial potential.
With VTNZ offering a network of 84 inspection workshops nationwide and a brand that speaks of high standards and quality, this company is in a significant position to offer a wider range of vehicle services and therefore deliver increased earnings. Turnover for the last financial year July 2012 – June 2013 was $88 million.
DEKRA SE is based in Stuttgart, Germany and has around 28,000 employees worldwide and 2012 revenues of around £2.2 billion. The DEKRA Business Units “Automotive”, “Industrial” and “Personnel” provide professional and innovative services in the fields of vehicle testing, expert appraisals, international claims settlement, consulting, industrial testing, product testing, certification, environmental protection, qualification as well as temporary work. The Business Unit DEKRA Automotive is the world‘s largest vehicle inspection provider, carrying out more than 23 million vehicle inspections a year.
The sale will be discussed by MTA members at a Special General Meeting to be held in Wellington on 20 September 2013, with the MTA Board seeking their support before proceeding with this sale.
If support is gained for the sale, it is anticipated the formal transfer of shares would take place on or about 30 September 2013.