Coote and GCS make acquisitions

ENGINEERING and rail services company Coote Industrial Ltd, and construction services company Global Construction Services Ltd, have added to a string of recent acquisitions. Coote has acquired Bassendean-based heavy powershift transmissions repairer, Industrial Powertrain, for $5 million. Under the acquisition, which was entirely funded through debt facilities, Powertrain will come under the management of PC Diesel business manager Peter Crosswell – with PC Diesel operating as a subsidiary of Coote’s Engineering Services division. “The acquisition introduces a highly complementary range of services and will extend the offering to our existing customer base in the Pacific Rim,” Mr Crosswell said. It continues a strong growth trajectory for Coote, which has acquired seven businesses over the past 18 months. Coote said the new deal would deliver additional net profit after tax of $1.175 million in 2008, before interest charges. Incorporating recent acquisitions Industrial Powertrain, FCD Container Logistics and Gemco Rail, Coote Industrial has revised its 2008 full-year projections to sales $214.5 million and net profit of $15.5 million. Meanwhile, GCS will acquire Bayswater Scaffold Hire for $500,000, less than two weeks after making its debut on the Australian Securities Exchange Bayswater Scaffold Hire provides scaffolding to the Perth residential market and has been active in the industry for more than 25 years. It has an annual turnover of about $950,000. The acquisition will be earnings accretive in its first year. GCS Group managing director Enzo Gullotti said the acquisition was in line with the growth strategy set out in the company’s recent prospectus. “This acquisition is an excellent addition to GCS Group and is the first of many we expect to make in the coming 12 months.” As part of the transaction, Bayswater Scaffold Hire owner Glenn Edwards will remain with the business, joining the GCS management team. Mark Beyer