Ashurst has advised Automotive Holdings Group Limited (AHG) on the A$400 million sale of its refrigerated logistics business, comprising the operations of Rand, Harris, Scott's and JAT, to CC Logistics (Australia) Pty Ltd, a wholly owned subsidiary of HNA Group (International) Company Limited (HNAI).

The consideration will comprise A$280 million in cash and the assumption by the buyer of A$120 million of finance lease liabilities. The transaction is structured as the sale and purchase of all of the shares of four corporate entities.

The sale of refrigerated logistics provides AHG with significantly greater financial capacity to continue to grow its market leading automotive retail division, as well as flexibility to undertake capital management initiatives.
 
Lead partner Roger Davies commented: "We were very pleased to work with AHG on this landmark deal for the company, disposing of its entire refrigerated logistics business. AHG is an important and highly valued client of the firm and we look forward to continuing to assist it with both its growth strategy and national operations."

The team was led by partners Roger Davies and Stuart James, senior associate Richard Tan and lawyers Grace Gentilli and Jacob Carmody (Corporate); partner Rob Lilburne, senior associate Melanie Taylor with lawyer Jenna Beitz (Employment); partner Gaelan Cooney and senior associate Zoe Woolford (Finance); partner Rehana Box and senior associate Philip Hopley (Insurance); partner Andrew Gay and lawyer Jacinta Pitos (Property); with partner Barbara Phair and senior associate Elke Bremmer (Tax).

Completion is expected in the first half of 2018.