PILBARA Hire Group has become the third privately owned Western Australian business to be sold in the past month to a listed company diversifying its activities.
PILBARA Hire Group has become the third privately owned Western Australian business to be sold in the past month to a listed company diversifying its activities.
Brisbane-based Austin Engineering announced last week the purchase of Pilbara Hire, which specialises in the repair of mobile mining equipment.
Austin chairman Peter Finch said the deal “closed the loop” for his company’s Pilbara operations, which hitherto have focused on equipment supply.
“We have received numerous requests from our clients to complete our service to them with a total package – design manufacture and repair,” Mr Finch said.
“We believe the acquisition will lead to an increase in requests for our products and services throughout the Western Australian mining areas.”
The $13 million deal will enable Austin to provide both on- and off-site fleet and equipment servicing for the major mineral producers.
Pilbara Hire director Kim Sheppard will stay on for 13 months as part of the deal and will be eligible for an earn-out based on achieving pre-determined targets for the 2011 financial year.
Similarly, in an acquisition announced by Monadelphous Group of onshore pipeline constructor KT Pipeline Services, the agreement included a deferred component payable to KT, subject to achieving financial targets.
KT, which was advised by West Perth-based Mergers & Acquisitions, will receive $10 million up front and may earn a total of $30 million in cash and shares.
Monadelphous is consolidating a growing portfolio of projects, which now includes gas transmission pipelines through the agreement with KT.
“KT Pipeline Services will expand capabilities in our infrastructure business, extend our range of services for existing customers and allow us to attract other customers in new sectors,” Monadelphous managing director Rob Vellerti said in a statement.
Mr Vellerti explained that the deal would diversify the company’s capabilities and drive its growth beyond the traditional markets.
In a third WA deal, Mount Gambier-based transport provider K&S Corporation has secured a larger footprint on the WA market with the acquisition of Regal Transport.
This followed its earlier purchase of WA company Pacific Transport in January.
The deals extend K&S’ capabilities in the state’s north-west region, providing depots in Perth and multiple Pilbara locations.
While the sale amount has not been disclosed, the vendors were reported to generate combined revenue in excess of $70 million.
Regal will continue to operate under the incumbent management with its existing workforce.
