Monadelphous pens $22m acquisition

Monadelphous is set to buy Melbourne-based mechanical and electrical services business BMC for about $22 million in a bid to expand its eastern seaboard presence.

The Perth-based engineering company entered into an agreement to acquire BMC for an initial cash payment of $22 million, followed by a purchase price adjustment.

BMC specialises in providing high voltage and instrumentation installation, calibration and maintenance services to the power, mining, oil and gas, and renewables sectors.

The Victorian-based company employs 180 staff and generates about $60 million in revenue per annum, according to Monadelphous’ release on the ASX.

“The acquisition of BMC is a key enabler to Monadelphous’ strategic efforts in developing its presence in the east coast-based energy generation, transmission and storage market, supporting Australia’s transition to clean energy,” Monadelphous said.

“BMC’s geographical location further strengthens Monadelphous’ position as a maintenance services provider to the growing offshore oil and gas decommissioning sector on the east coast of Australia.”

Monadelphous is expected to complete the transaction by the end of the 2023 financial year.

At market close, Monadelphous shares last traded at $13.04, up 0.69 per cent.