CARDNO CONTINUES ACQUISITION STRATEGY

Written on the 13 February 2013

CARDNO CONTINUES ACQUISITION STRATEGY

CARDNO (CDD) has increased its presence in Western Australia with the acquisition of construction materials testing (CMT) firm Geotech.

The move expands Cardno’s CMT expertise nationwide, with existing division Cardno Bowler already active in Queensland, New South Wales and Victoria.

“Acquiring Geotech strengthens the Cardno Bowler Division and allows us to expand on the services we can provide to our existing Western Australian clients and increases our exposure to work in the mining and oil and gas markets in Western Australia,” managing director Andrew Buckley (pictured) says.

Cardno will pay up to $26.7 million for Geotech, with about 30 per cent of the purchase price subject to the achievement of performance targets over the next 12 months, with an additional 3 per cent of the purchase price deferred for 24 months.

The acquisition will be funded by an approximate mix of 75% cash and 25% shares. Around 650,000 shares will be issued at a price of $6.91. The cash component will be funded from available cash reserves.

Cardno was trading at $7 per share late this afternoon, up 0.87 per cent on the previous day’s close.

Geotech services clients on major mining, liquefied natural gas (LNG) and government infrastructure projects, such as the multi-billion dollar Gorgon LNG project.

Its team of 190 staff operate from mobile laboratories throughout Western Australia, with headquarters in Bunbury.

Geotech managing director Steve Pederick says the acquisition will open up significant new growth opportunities for the firm.

Cardno predict the purchase will contribute $23 million in revenue and $5.3 million earnings before interest and taxes (EBIT) over the next 12 months.

Read more about Cardno’s success in the exclusive interview with Andrew Buckley in the February edition of Brisbane Business News.


Latest News

BELLAMY'S FINDS EXPORTING BABY FORMULA INTO CHINA IS NO CHILD'S PLAY

BELLAMY'S (ASX: BAL) shares have suffered a 40 per cent drop in value today after the company hit a regulatory...

BRISBANE WATCH BRAND ADINA AIMS FOR ICONIC

ADINA watches is at a turning point in its history, 45 years after being founded by Robert 'Bob' Menzies i...

WHY YOU SHOULD CARE FOR YOUR BODY AS MUCH AS YOUR BUSINESS

ENTREPRENEURSHIP is a busy business. It can be all-consuming, but it is important not to neglect your health Y...

BULLETS BACK IN THE BUSINESS COMMUNITY

ALTHOUGH new to the current south-east Queensland sporting landscape, the Brisbane Bullets have a rich basketball ...

Related News

JB HI-FI IS THE GOOD GUY IN $870 MILLION ACQUISITION

ELECTRONICS giant JB Hi-Fi has formally completed its $870 million acquisition of home appliance chain The Good Gu...

ACCC ACTS AGAINST MERITON'S RIGGED REVIEWS

MERITON Property Services is under fire from Australia's main consumer watchdog, after it allegedly engaged in mi...

ACCC FIRES WARNING SHOT TO IVF PROVIDERS

IVF clinics have been put on notice by consumer watchdog, the Australian Competition and Consumer Commission (ACCC...

BIG W CEO QUITS AFTER 11 MONTHS

SALLY MacDonald has resigned as chief executive of BIG W ending her tenure at the helm of the struggling discount ...

Contact us

Email News Update Sign Up Contact Details

Subscribe to our mailing list

* indicates required
Email Format

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter