Engineering giant Monadelphous Group will enter the water market with the purchase of diversified design, build and maintenance business Water Infrastructure Group for about $6 million.
Monadelphous said it would make an initial cash payment to acquire the subsidiary of US-listed industrial machinery firm Pentair, followed by a purchase price adjustment either upwards or downwards depending on the subsidiary’s final net asset position by the time the transaction is complete in February.
WI Group provides water infrastructure solutions across Australia and New Zealand and employs about 120 people.
It designs systems for water recycling and wastewater treatment, water treatment and distribution.
Its construction division specialises in treatment systems, custom tank manufacture, stainless steel pipe assemblies, high-pressure pump skids and walkways and working platforms.
It has had an average turnover of about $60 million in the past three years.
“The WI Group business will provide Monadelphous with strong capability in water design solutions, expand our geographical presence in the water market both in Australia and New Zealand, and provide significant opportunities in the growing infrastructure maintenance sector,” Mr Velletri said.
WI Group is currently designing and building a $76 million thermal drying biosolids facility in Geelong, under a consortium with Barwon Water and Plenary Environment.
Shares in Monadelphous were 3.37 per cent higher at $8.90 per share at 11:10am.