Infrastructure services firm Cardno has acquired Bunbury-based Geotech Materials Testing Services in a transaction worth up to $26.7 million.
Cardno said around 30 per cent of the purchase price was subject to performance targets over the next 12 months, while 3 per cent would be deferred for 24 months.
The acquisition will be funded by a mix of 75 per cent cash and 25 per cent shares.
Geotech was established in 1993 in Bunbury, and holds more than 30 contracts on major mining projects, including works for BHP Billiton, Fortescue Metals Group and Rio Tinto.
The acquisition is expected to contribute around $23 million in revenue and $5.3 million EBIT to Cardno over the next year.
“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 said.
Geotech will be renamed Cardno Geotech once the transaction is settled.
At close of trade today, Cardno shares were up 0.8 per cent, trading at $7.00.
