Engineering and infrastructure services outfit Downer EDI has expanded its mechanical, construction and maintenance business with the acquisition of Kwinana-based Western Construction.
Engineering and infrastructure services outfit Downer EDI has expanded its mechanical, construction and maintenance business with the acquisition of Kwinana-based Western Construction Co.
Western Construction, a 35 year old company with an annual turnover of $60 million, provides specialised mechanical fabrication, construction and mechanical maintenance services to the oil and gas and resources sectors.
Scheduled for completion in Spetember, Downer EDI chief executive said the acquisition reinforces the group's position as a leading supplier of mechanical services to the Australian resources and energy sectors.
Full announcement below:
Downer Expands its Mechanical, Construction and Maintenance Business
Friday, 28 August 2009
Downer EDI Limited (Downer Group) today announced it has signed a conditional agreement to acquire Western Construction Co, a leading provider of specialised mechanical fabrication, construction and mechanical maintenance services to the oil and gas and resources sectors.
Downer Group Chief Executive Officer, Geoff Knox, said the acquisition, scheduled for completion in September 2009, reinforces the Group's position as a leading supplier of mechanical services to the Australian resources and energy sectors.
"The acquisition of Western Construction Co enhances our mechanical construction and maintenance capabilities and further strengthens our ability to capitalise on the significant growth opportunities emanating from the energy and resource sectors, particularly the LNG and iron ore markets in Western Australia," Mr Knox said.
"This acquisition is consistent with our strategy of seeking bolt-on investment opportunities which offer value, scale and competencies adjacent and parallel to Downer EDI, with the ability to ultimately deliver a greater service offering to our customers."
"Downer's broad design, consulting, engineering, rail and mining capabilities, combined with our strong client base across Australasia, position us well to capitalise on the significant opportunities in the region, in particular the large LNG projects earmarked for the west," Mr Knox said.
Western Construction Co's operations are based out of Kwinana in Western Australia. The Group carries expertise in engineering design, project management, fabrication, construction, installation, commissioning and refurbishment as well as whole-of-life plant and equipment maintenance and shutdowns.
During the past 35 years Western Construction Co has successfully delivered a range of services across Australasian projects in the oil and gas, resources and mining and heavy industrial sectors. Turnover for the 12 months ended 30 June 2009 was approximately $60 million.
Western Construction Co Managing Director, Martin Epis said "The directors of Western Construction Co are delighted to be joining forces with Downer EDI. Western Construction Co and Downer EDI have worked well together on many projects and we will now be able to offer our clients a much larger range of services"