Civmec has expanded its portfolio with the completion of its $20.7 million acquisition of NSW-based private engineering and shipbuilding company Forgacs Engineering.
Perth-based Civmec announced the deal in November, but following a due diligence process it decided to acquire the Forgacs name, shipyard facilities and assets located at Tomago in NSW, but decided against the acquisition of the target’s additional plant and equipment at its Gladstone and Hexham operations.
The purpose-built 22.7-hectare shipyard at Tomago is adjacent to the Hunter River, close to the port of Newcastle.
It includes 535 metres of river frontage with two ship basins.
Civmec plans to develop the Tomago site to operate as a multi-disciplinary facility, replicating its flagship Henderson facilities south of Perth.
Chief executive Pat Tallon said the acquisition gave Civmec a strong presence on the east coast, enabling it to establish a more substantial office there to provide national and regional clients with a range of services similar to those it provided in Western Australia.
“It also ensures that we are well-positioned immediately to capitalise on the significant ongoing infrastructure expenditure on the east coast,” he said.
“Our initial focus will be on steel fabrication and pre-cast concrete manufacture, and over time we intend to combine the credibility of both the Tomago purpose-built shipbuilding facilities and Civmec’s heavy engineering expertise to further strengthen our defence service offering.”
Civmec was unchanged at 37 cents each on the Singapore stock exchange at 1:40pm Perth time.