Bunbury-based Impressive Group Ltd will be acquired by Hills Industries Ltd subsidiary Orrcon Pty Ltd under a combined $10 million acquisition drive by the South Australian company.
Bunbury-based Impressive Group Ltd will be acquired by Hills Industries Ltd subsidiary Orrcon Pty Ltd under a combined $10 million acquisition drive by the South Australian company.
The full text of a company announcement is pasted below
The Chairman of Hills Industries Limited, Jennifer Hill-Ling, today announced that contracts have been signed in relation to the acquisition of two businesses, both of which were completed on the 1st May 2007.
1. AIR COMFORT SEATING SYSTEMS (Air Comfort) Air Comfort is a leading Australian manufacturer, importer and wholesaler of pressure care seating for the aged care sector. The Air Comfort seating range utilises a unique patented system of air cushions. Air Comfort products are widely used in nursing homes and in situations where pressure management is critical for patient comfort.
Hills owned businesses K-Care and Kerry Equipment participate in the mobility, rehabilitation and aged care market segment. The acquisition of Air Comfort is a logical product range extension for these two businesses.
Air Comfort products have an excellent reputation in Australia and New Zealand. Hills intention is to expand the distribution base and product range and also focus on international markets where the products have already met with success. Although Air Comfort is a small business, it is well placed to participate in an expected increase in demand as the population ages.
2. IMPRESSIVE STEEL
Impressive Steel operates a successful steel distribution business based in Bunbury in Western Australia. The acquisition of Impressive Steel by Hills wholly owned subsidiary Orrcon Pty. Limited will allow Orrcon to better access the rapidly expanding opportunities driven by the infrastructure build in Western Australia. Impressive Steel is an existing Orrcon customer and will play an important part in widening Orrcon's distribution capabilities in regional and remote Australia.
Orrcon is progressively reshaping its business and has recently added products targeted at the oil, gas and water industries. Evidence of Orrcon's success in this regard is the recent awarding of a circa $50M contract to supply pipe for the South East Queensland Water Grid Project.
Ms Hill-Ling said that the acquisitions will involve a combined outlay in the order of $10M and will result in an increase in sales in the order of $15M per annum.
