Decmil Group has expanded its business with the acquisition of Melbourne-based civil engineering company Cut & Fill Pty Ltd for $9.5 million.
The Perth-based engineering and construction contractor said the acquisition of Cut & Fill would provide the company with an established and direct platform in civil infrastructure markets in Victoria, the ACT, and NSW.
“Cut & Fill holds the highest available pre-qualification accreditation with various state government infrastructure bodies and has a long history of successful delivery of various road, rail, bridge and related infrastructure projects,” Decmil said in a statement.
“For the 2015 financial year, Cut & Fill generated about $58 million in revenue and generated earnings before interest, tax, depreciation and amortisation of about $1.8 million.
“Decmil has acquired $25 million of work in hand, assumed $600,000 of hire purchase liabilities and about $25 million of cash remaining in the business.”
Decmil has also appointed John Hemi as its general manager of New Zealand operations.
Decmil’s first NZ project, a school in Christchurch for the NZ Ministry of Education, is under way.
Chief executive Scott Criddle said the acquisition of Cut & Fill and the appointment of Mr Hemi were important steps forward in building Decmil’s presence on the east coast and in NZ, growing its civil infrastructure capability and building further relationships with state and federal governments.
“These markets are a key focus for Decmil as we build our presence and capability in a variety of public and private sector infrastructure,” he said.
Decmil shares were 1 per cent lower to 99.5 cents each at 10am.