GCS flags potential takeover

Redcliffe-based Global Construction Services says it has submitted a non-binding bid for an unnamed hire business in Western Australia, which generates $9 million in revenue a year.

In a statement to the local stock exchange, GCS said negotiations with the target are at a preliminary stage and remain incomplete.

"The transaction is subject to various approvals and if the bid is successful, it is expected that the acquisition will be EPS [earnings per share] accretive," GCS said.

GCS added that the target fits in with the company's growth strategy of acquiring businesses that are complementary to its existing suite of products and services.

GCS provides scaffolding and other construction materials.

Shares in the company were unchanged at $1.03 at 14:23 AEDT.