10/04/2017 - 10:17

GCS buys Melbourne business

10/04/2017 - 10:17

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Global Construction Services hopes to gain more exposure to the commercial construction sector on the east coast through the acquisition of a Melbourne-based business for $18.4 million in cash and scrip.

GCS buys Melbourne business

Global Construction Services hopes to gain more exposure to the commercial construction sector on the east coast through the acquisition of a Melbourne-based business for $18.4 million in cash and scrip.

Perth-based GCS will pay $7.4 million in cash and $5.5 million in shares to acquire Summit Formwork and Summit Investment Services, which provide construction services specialising in formwork, concreting and reinforcement to commercial, residential and retail development projects in Victoria.

GCS will also pay a further $5.5 million in cash, subject to an earn-out arrangement based on earnings before interest, tax, depreciation and amortisation milestones.

“The acquisition represents another significant step in progressing and delivering on GCS’s strategic priorities which includes building a strong presence on the east coast of Australia,” GCS managing director Enzo Gullotti said.

“The Summit business is well aligned and complements GCS’s core business.

“It also provides us with a platform to target and pursue other synergistic opportunities.”

GCS shares were 4.3 per cent higher to 60 cents each at 10:15am.

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