KARRATHA-BASED Carr Civil Contracting has readied itself for expansion by negotiating an equity investment and strategic alliance with South African engineering and construction company WBHO.
KARRATHA-BASED Carr Civil Contracting has readied itself for expansion by negotiating an equity investment and strategic alliance with South African engineering and construction company WBHO.
Carr Civil managing director Mark Blayney said his company was also in the process of buying Geraldton-based contractor North West Holdings.
He said Carr Civil would be owned 50:50 by its current shareholders and WBHO after the equity investment (for an undisclosed sum) was completed.
“It gives us a stronger balance sheet, access to a lot more experience, and security from a supplier and client perspective,” Mr Blayney said.
He said Carr Civil, which focuses on earthmoving, concrete and bulk material haulage, was aiming for total revenue of between $75 million and $80 million in the current financial year, to June 2011.
Mr Blayney said WBHO had assisted in the process of buying North West Holdings, but the transaction had been planned already.
Carr Civil currently has 130 staff in its Pilbara operations, and will have 200 after completing the acquisition of North West Holdings.
Mr Blayney described North West as the second largest civil contractor and earthmoving group in the Mid West region.
WBHO, listed on the Johannesburg Stock Exchange, has annual revenue equivalent to $A2 billion.
It has completed a wide range of civil contracting and construction projects, including the construction of three World Cup soccer stadiums, airport upgrades and power stations.
It has also has interests in road construction and earthworks.
WBHO’s investment in Carr Civil adds to its existing interests in building and civil engineering in Australia.
It already has a 69 per cent shareholding in Melbourne-based construction company Probuild, which has been appointed builder of two of the largest CBD construction projects currently under way in Perth.
Probuild was builder of the one40william office tower, costing about $210 million, and recently took over the adjacent Raine Square project.
In addition, WBHO has a 43 per cent interest in Perth-based contractor CECK Civil Construction.
Carr Civil’s twin transactions follow a strong trading performance by the company.
Its recent work includes contracts at the Cape Lambert iron ore project, for the Dampier Port Authority and at the Sino Iron project south of Karratha.
Mr Blayney bought the company in 2002, guiding it through a brief period in voluntary administration as a result of a problem contract before leading it to strong growth over the past six years.
That success resulted in Mr Blayney winning a WA Business News 40under40 Award and his company winning a Rising Stars award.
He said WBHO would have directors on Carr Civil's board but management would not change.
