TrenStar Selected By Leading U.K. Brewer To Acquire Its Keg Fleet And Provide Management Services
DENVER--May 1, 2002--Trenstar's Partnership With the U.K.'s Leading Brewer Scottish Courage Signals the Potential for Competitive European Brewers to Share in a
Neutrally Owned and Managed Keg Pool
TrenStar, Inc. announced that on 24 April 2002 it concluded major agreements with Scottish Courage Limited, the U.K.'s leading brewer, part of Scottish & Newcastle plc and one of the largest brewers in Europe, to acquire the beer keg fleet of Scottish Courage (some 1.9 million units) and to provide an ongoing keg management service for the brewer.
TrenStar will make the fleet available to Scottish Courage under a container services agreement for a period of 15 years on a "per fill" fee basis. The fleet acquisition and ancillary equipment of approximately $69.4 million was funded by a major U.K. bank.
Scottish Courage, as an already acknowledged leader in keg tracking and management systems, is a natural partner for expanding TrenStar's leading asset and information management solutions into this innovation in keg fleet management.
Alan Doyle, TrenStar's senior vice president of Business Development, says, "The transaction is the first of its size and nature in the U.K. It is one of the largest mobile asset management projects to date and establishes TrenStar as an emerging and significant provider of asset purchasing offered together with technology and management services solutions to the European brewing industry."
TrenStar intends to use this transaction as a springboard for the creation of an "industry-wide pool" of beer kegs owned and managed by TrenStar companies and used by U.K. and European brewers to reap the cost benefits of greater efficiencies and economies of scale. Scottish Courage fully supports the pooling concept. Negotiations with other brewers in Europe and internationally are at an advanced stage.
Greg Cronin, TrenStar's CEO, says: "The decision of Scottish Courage to transact with TrenStar is an important validation of the TrenStar business model of providing mobile container management technology solutions and operational services on a per-use fee basis. TrenStar provides solutions for supply chain execution, automatic data collection, mobile asset management and collaborative logistics integration to asset-intensive industries. Our new operating model represents a significant and efficient improvement on the traditional 'rent per day' business model currently utilized by asset management providers. Our unique solution combines the purchasing and outsourcing of mobile assets with robust technology and with TrenStar's domain expertise in the logistics and management of mobile assets."
Note to editors: TrenStar's website at www.trenstar.com provides more information, or contact either Michael C. Dempsey in the U.S. at 303/220-5166 or Jon Lowe at 800/138-00-36 for callers outside of the U.S.
About TrenStar
TrenStar is a global supplier of innovative mobile data computing, asset management and collaborative logistics solutions. The company's industry-leading returnable packaging programs, logistics management services, information technology and financing optimize supply chains of its clients and their trading communities. TrenStar is the only industry supplier offering this single-source total solution. TrenStar's flexible returnable packaging and intermediate bulk container sales and per-use programs are complemented by asset-focused logistics management services supported by resource optimization software tools and proven logistics expertise. TrenStar's technology solutions include mobile asset management software systems integrating leading-edge barcode and RFID technologies. TrenStar provides its customers with mobile asset management through its visionary "Per Use Fee" pricing and delivery business models.
TrenStar serves clients across a broad spectrum of markets, including food and beverage, chemical, automotive, transportation services, logistics and retail. TrenStar's client list includes Kraft, Ford, Daimler Chrysler, Degussa, IFF, and others. TrenStar is headquartered in Denver, Colorado, with international offices in the U.K., South Africa and Australia.