A Perth-based construction, drilling and civil works company SRG Ltd has struck an $A33 million ($NZ34.8 M) deal to buy a New Zealand industrial contractor from automotive company Bapcor.
The newspaper The West Australian reported SRG would conduct an $A24 M capital raising to help fund the acquisition of Auckland-based TBS Group.
The West said TBS specialises in maintenance and remedial services in such industries as oil and gas, transport infrastructure, energy, renewables, steel and dairy. It has 450 employees.
The newspaper said SRG was expected to achieve fiscal 2018 revenue of $A70 M and earnings before interest and tax of up to $A6.4 M.
Earlier Bapcor Ltd (ASX: BAP) picked up the TBS business as part of its acquisition of investment company Hellaby Holdings.
Commenting, SRG managing director David Macgeorge said TBS would provide further international geographic expansion and a platform for future growth in New Zealand.
“We have significantly enhanced our exposure to asset maintenance services and believe there are significant opportunities to be unlocked including various cross-sell opportunities across both Australia and NZ,” Macgeorge reportedly said.
The West said that under the capital raising, SRG plans to place $A20 M shares with institutional investors at $A1.60 each and will raise up to $A4 M from retail investors at the same price.
SRG’s shares were trading around $A1.68.