CARDNO BUYS HAYNES WHALEY FOR $22 MILLION

Written on the 9 October 2013

CARDNO BUYS HAYNES WHALEY FOR $22 MILLION

CARDNO Ltd (ASX:CDD) will acquire Haynes Whaley Associates (HWA) for US$22.25 million under an agreement signed today.

Professional infrastructure and environmental services company CDD is expected to gain about US$20 million revenue and $4.6 million in Earnings Before Interest, Taxes, Depreciation, and Amortization from the acquisition, over the next 12 months.

CDD managing director Andrew Buckley says the move expands the company’s American structural engineering interests.

“In particular, this expansion will drive additional opportunities for cross-selling structural engineering services to existing Cardno clients, and offering HWA’s clients access to the broader range of Cardno’s engineering and environmental services.”

HWA president Larry Whaley says his company’s focus has always been to provide the highest level of structural engineering expertise to its clients.

“We are pleased to join Cardno, a company that shares our values and corporate culture and offers us the ability to continue to grow our business by expanding our services domestically and globally through their 290 offices worldwide.”

CDD shares rose .49 per cent upon the announcement, from a low of $6.040 to $6.120.

HWA is a 100 person structural engineering firm based in Houston, Texas, with other offices in Reston, Virginia and Austin.

Its clients include: developers, architects and a range of public, institutional and private entities such as the City of Houston, Walt Disney Imagineering, the State of Texas university systems, the National Institutes of Health, the General Services Administration, Rice University, Trammel Crow Company, Exxon Mobil and NASA.

About 10 per cent of the purchase price is subject to achieving performance targets over the next 12 months, with an additional 15 per cent of the purchase price deferred for 24 months.

HWA will become a part of CDD’s American operations and will operate as Cardno Haynes Whaley Inc.

The addition of HWA significantly enhances CDD’s structural engineering capabilities across a broad range of commercial, public, and institutional clients.

The firm works internationally as well as nationally, with project experience across 40 US states, Africa, the Caribbean, Malaysia, and Singapore.

Combining this expertise with CDD’s current engineering portfolio creates a strong platform to deliver added value to both firm’s existing clients.

Upon completion of the transaction HWA’s key management will become CDD shareholders and remain active in the company.

The purchase is funded by an approximate mix of 75 per cent cash and 25 per cent shares.

About 550,545 shares will be issued at a price of $6.21 each.

The cash component will be funded from available cash and debt facilities.

Shares issued as part of the deferred payment and earn-out will be based on the 10 day volume average weighted price at the time of payment.

The acquisition will be immediately earnings per share accretive.

The acquisition has an effective date of October 8, 2013.


Latest News

GROUPTOGETHER A GIFT FOR TIME-POOR PARENTS

JULIE Tylman and Ali Linz have taken the stress out of gift giving by creating GroupTogether, an online platform whic...

SIRTEX CEO DISMISSED FOLLOWING SHARE TRADING PROBE

SIRTEX Medical Ltd (ASX: SRX) has sacked its chief executive officer, Gilman Wong (pictured), following an investigat...

SANTA DELIVERS KOGAN A GIFT

KOGAN.COM (ASX: KGN) has exceeded its expectations and reported another strong quarter of trade.

The online retail...

FOUR WAYS YOU SHOULD PROTECT YOUR IT SYSTEMS FROM EXTREME WEATHER

SHANNON Overs, co-founder of onPlatinum ICT, sees it too often, perhaps half a dozen times per year businesses tha...

Related News

RISE OF STARTUP SUPPORT PROGRAMS NOT AS ROSY AT IT SEEMS

ENTREPRENEURIAL cultivation companies in Australia are appearing quickly, but questions have been raised about whe...

SMES TAKE RETAIL MARKET SHARE AS CONSUMERS CHOOSE PERSONALISATION

IN a battle for the hearts and wallets of Australian consumers, it appears that small and medium retail businesses...

KNOWLEDGE WORKERS AMONG MOST SOUGHT AFTER IN 2017

BUSINESSES searching for efficiencies and improved systems are in search of knowledge workers early this year, say...

FEMALE ENTREPRENEURS GET SPRINGBOARD TO GROWTH

DESPITE the fast-growing number of women studying STEM subjects at school and university, women continue to be und...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter