KWINANA-BASED AusGroup is set to enhance its service offering and expand its geographical reach after acquiring scaffolding business Modern Access Services for $15 million. AusGroup (AGL), through its wholly owned subsidiary Ausclad, will pay $10 million cash and issue $5 million worth of shares to Modern’s three joint venture owners, including Modern Industries Holdings. Modern Access Services (MAS), incorporated in early 2008, currently has operations in Australia, Singapore and Thailand, a country that Singapore-listed AGL has no presence in. The company’s client list includes Woodside, ExxonMobil and Chinese outfit MCC Mining. AGL chief executive John Sheridan said the company has been on the hunt for acquisitions for some time and the merger with MAS would provide customers with an integrated service. “MAS and AGC are now better positioned to offer our clients a more integrated and streamlined service offering in both construction and asset support operations across the oil and gas and mineral resource markets,” he said. Mr Sheridan added that the MAS acquisition would nearly double AGL’s order book from $203 million to $455 million, with a strong pipeline of contracts for the next three years. The acquisition is subject to certain conditions and barring any unforeseen circumstances, AGL expects to complete the merger on May 25
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