Engineering and construction contractor Decmil Group has continued its expansion into the Queensland market with an agreement to acquire Brisbane based Eastcoast Development Engineering.
Eastcoast provides fabrication and installation of high pressure pipes, vessels and tanks used in many heavy industries throughout Australia and the Pacific Islands.
Eastcoast reported an annual turnover of $80 million last year with Decmil chief executive Scott Criddle saying that it would allow his company to broaden the range of services it could offer particularly in the oil and gas sector.
Perth-based Decmil said it would finalise the terms of the acquisition next month after completing due diligence.
It anticipated the price negotiated with Eastcoast’s shareholders would be less than three times earnings before interest, tax, depreciation and amortisation (EBITDA).
The deal will allow Decmil to expand into the coal seam gas industry in Queensland which is currently experiencing significant growth.