Tech-Link initiated AUD7.5M acquisition of Dexion creates Australasian logistics powerhouse
A former general manager of Dexion®, recognising the potential and value inherent in the iconic brand, was the motivating force behind Singaporean-owned Tech-Link Storage Engineering’s recent AUD 7.5 million acquisition of the storage and materials handling products manufacturer.
The Tech-Link initiated purchase of the 80-year-old international logistics company Dexion became effective 1 June 2017, in a deal that the new owners see as the start of a synergistic and mutually beneficial relationship between the two brands – one that creates a major logistics powerhouse within Australasia.
Khurshed B Mirza, General Manager & Procurement Expert at Tech-Link Storage Engineering Australia and New Zealand, was previously General Manager for China, and Strategic Sourcing Manager (Asia Pacific) until he joined Tech-Link in 2015 (having worked for Dexion for almost 10 years).
He says, “Dexion is very much part of my professional DNA, and I wanted to see the company achieve its true potential. When I approached the founder and Chairman of Tech-Link Group, Tan Hock Seng, with the idea of purchasing Dexion, he was immediately excited because Dexion was originally an inspiration to him when he started Tech-Link back in 1988.
“Dexion’s staff, franchisees, customers and suppliers can now look forward to growth and firm partnerships as part of a simplified business model that emphasises Dexion’s core strength, which is the engineering capability that resides in the company’s most important asset – its people.
“We believe in this business and its people. We see a bright future for the company in the hands of a leadership team that truly understands logistics. That’s why we bought it.”
Tan Hock Seng says the strategic objective of the acquisition is to enhance Tech-Link’s global presence.
“We aim to broaden the company’s reach into the Australasian logistics industry, and in particular to take the opportunity to work with companies such as the Toll Group, IKEA, Unilever, DHL, Bunnings and other valuable clients.”
Tech-Link says Dexion’s world-class engineering capability adds value to the company’s product offering, and the Tech-Link brand will not overshadow the Dexion brand.
“Dexion is a globally respected brand with more than 80 years of history, innovation and engineering excellence behind it. Together Tech-Link and Dexion are two strong organisations that make each other even stronger.”
Khurshed says Dexion has continued to flourish because of the respect that clients have for its engineering expertise. “For example, in New Zealand, where seismic activity is very much a reality, it is in Dexion’s engineering that people trust to keep their operators and other staff as safe as possible.”
“The New Zealand example demonstrates that, in terms of re-establishing Dexion as a major player in Australasia, we need to get back to basics and leverage our core strength. That core strength is the engineering capability of the company that is so trusted by clients around the world.”
Tech-Link itself has progressed from an importer of storage equipment to a group of companies involved in R&D, system design, supply and implementation of logistics supply chain automation systems. In addition, Tech-Link has also broadened its horizons to encompass Industrial Property Development of Built-to-Suit Distribution Centres and Healthcare Automation systems.
Khurshed thanked the teams at PKF Corporate Finance NSW and K&L Gates for their unwavering strong support throughout the acquisition process.