Maca to buy east coast business

MACA is seeking an entry into the east coast civil works market by acquiring a large stake in a privately owned road asset management and maintenance services provider.

Perth-based Maca has entered into an agreement to acquire an initial 75 per cent stake in Services South East, which operates in Victoria and South Australia, for $1.35 million.

Under the terms of the deal, Maca will also assume 75 per cent of SSE’s existing debt facilities, equal to $7.4 million, and will have the option to acquire the remaining 25 per cent in the business.

SSE, which has an annual turnover of $25 million, provides asset management and road maintenance contracts for VicRoads as well as government and minor civil works projects.

Maca chief executive Chris Tuckwell said the acquisition provided the business with an immediate entry into the east coast civil market where Australian road agencies were outsourcing road asset maintenance.

“The acquisition enables Maca to establish a baseline of recurring asset management and road maintenance work to underpin the civil business going forward,” he said.

“SSE has three long-term maintenance contracts and will add about $60 million of recurring civil maintenance work to Maca’s work in hand.”

It follows news in January that Maca had entered into an agreement to buy Alliance Contracting to broaden its gold portfolio within Western Australia.

Maca shares were 0.5 per cent lower to 92.5 cents each at 10am.