SEYMOUR WHYTE ANNOUNCES ACQUISITION AND EXPANSION

Written on the 19 February 2014

SEYMOUR WHYTE ANNOUNCES ACQUISITION AND EXPANSION

 INFRASTRUCTURE engineering and construction company Seymour Whyte Ltd (ASX: SWL) is growing in size and expanding its geographical footprint, this week announcing an acquisition of a privately owned civil construction business and an award of $62 million additional Queensland works.

The company will acquire underground pipe and service installations business Rob Carr Pty Ltd (RCPL) for $27.5 million in cash and the issue of 9.6 million new SWL shares by mid-March.

The acquisition will provide greater financial capacity to facilitate SWL’s expansion plans in the transport, resources and utilities sectors.

It is expected to open up new projects and sectors across additional geographic regions in Queensland, New South Wales and Western Australia, previously unchartered by SWL.

SWL managing director and CEO David McAdam (pictured) says the company looked at more than 50 acquisition targets before deciding on RCPL, which has a track record of strong growth and revenue of $48.4 million for financial year 2013.

“This will be Seymour Whyte’s first acquisition so extensive due diligence was conducted,” he says.

“Rob Carr was selected because it’s an exciting business that provides a range of new growth opportunities and offers a strong alignment of operating cultures and professional competencies.”

SWL has forecast its contestable market for the current capabilities of RCPL in the water and power sector at approximately $4 billion through to financial year 2018.

On the more local front, SWL will partner with Parsons Brinckerhoff Australia to design and construct the Smith Street / Olsen Avenue Interchange Project in Southport over the next 18 months, in preparation for the 2018 Commonwealth Games.

The project is part of an award of $62 million worth of works in Queensland, including two flood recovery projects and a highway rectification.

McAdam says the awarded projects will underpin SWL’s forecasted consolidated revenue of $320 million for financial year 2014, which was revised upwards following the RCPL announcement.

He also says the Commonwealth Games catalyst infrastructure on Smith Street / Olsen Avenue will mark a collaborative first for SWL and also a potential industry landmark.

“The joint venture delivery model takes our team’s commitment beyond the traditional designer-constructor relationship,” he says. “It may be the first time in the civil construction industry that a true joint venture has been developed with the design partner, further enhancing the benefits to the project, our client and the design and construction team.”

SWL currently has more than 230 employees in its Queensland and New South Wales offices, with this number set to grow in light of the RCPL acquisition.

SWL is trading up 5.59 per cent today at $1.51 a unit.


Latest News

1700 BRISBANE APARTMENTS NOW MANAGED BY FORTUNE 500 COMPANY JLL

MULTINATIONAL and Fortune 500 company JLL (NYSE: JLL) has expanded its Australian dominance in the property managemen...

HARVEY NORMAN HITS OUT AT 'FALSE NEWS' OF ASIC INVESTIGATION

RETAIL giant Harvey Norman (ASX: HVN) has vehemently rejected reports its accounts are under investigation by ASIC, s...

RARE GOOD NEWS FOR SLATER AND GORDON AS ASIC CLOSES INVESTIGATION

ASIC has cleared Slater and Gordon of deliberately falsifying its accounts after a three-month investigation.

It s...

Q & A WITH FACEBOOK GURU ANDY MCKEON AS HE JOINS AUSTRALIAN SOFTWARE COMPANY LIVETILES

HE was creative director at Apple under the legendary Steve Jobs, and is now a senior Facebook executive. In his n...

Related News

RAY OF HOPE FOR SLATER AND GORDON AS LENDERS STEP IN

EMBATTLED law firm Slater and Gordon (ASX: SGH) has announced to the ASX that it has launched confidential discussion...

SPROUTX PROVIDES THE SEED FOR AGTECH STARTUPS

AGTECH innovation fund SproutX has opened applications for its first accelerator round, backed by $10 million from...

GAS PRICES MAY FORCE BRICKWORKS TO TAKE MANUFACTURING OVERSEAS

BRICKWORKS Limited (ASX:BKW) chairman Robert Millner says soaring energy prices may force the company to turn to offs...

CHINA CONTINUES TO COLLECT AUSSIE PROPERTY ASSETS

CHINESE coin continues to dominate Australia's offshore real estate investment market, accounting for almost h...

EVENTS COMING UP

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter