Growth, not rationalisation motivated Renfreight Circle deal - Steyn

GROWTH RATHER than rationalisation benefits was the prime motivation for the Renfreight Circle merger (FTW April 3, 1998).
That was the message that came through loud and clear from Rennies group c.e. Piet Steyn at a press briefing in Johannesburg last week.
Renfreight g.m. Barry Middleton will head up the new operation which officially starts business on May 1. It will continue to operate from two physical locations and no management rationalisation will be involved in the deal.
We don't see any retrenchments if we achieve our growth objectives, Steyn told FTW. And growth in the region of 15-20% per annum is what Steyn envisages.
Renfreight holds an 80% share in the new business, Circle International 10% and Barlows the remaining 10%.
The company will have an annual turnover of R4,9 billion.
The decision to acquire Circle was taken after lengthy feasibility investigations, and factors which favoured Circle include its customer focus, strong international network, complementary range of logistics services, African focus and advanced information systems.
Renfreight's agreement with Lep, which has been its international agent for 12 years, expires at the end of April.