Engineering firm Calibre Group has acquired Queensland’s G&S Engineering Services in a cash and scrip deal worth up to $74 million, at today’s share price.
Calibre announced today that it had agreed to acquire all of the shares in G&S in exchange for $39.2 million in cash and 14.2 million shares.
Also, the group anticipates that a final deferred acquisition payment of up to $18 million will be payable on achievement of certain performance milestones by G&S.
Calibre will also absorb $26 million of debt, taking the total deal value to about $100 million.
At close of trade today, Calibre shares were 16 cents higher at $1.15.
Mackay-headquartered G&S is a privately-owned provider of operations, maintenance and asset management services to the coal sector.
It employs around 1,000 personnel across six facilities in Queensland and New South Wales.
Calibre said it expected the acquisition, which is due to be completed in late November, to contribute up to $160 million in revenue and $10 million in EBITDA to its 2013 financial year results.
G&S achieved revenue of $279 million in FY2012.
Calibre managing director Rod Baxter said G&S would substantially expand the company’s suite of services to established and operating mines.
“G&S represents a transforming opportunity for Calibre to expand its capabilities in operations and maintenance services, and substantially increase the group’s revenue exposure to the ongoing and capital and operational expenditure of existing mining operations,” Mr Baxter said.
“With Calibre’s existing acquisition facility and strong cash flows, we will remain in a sound position to pursue further acquisitions in line with our strategy.”
Completion of the transaction remains subject to satisfaction of conditions precedent and is expected to occur in late November.
