Nomad acquires Rapley Wilkinson for $40m

15/01/2008 - 08:10

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Henderson-based Nomad building Solutions Ltd has announced today the $40 million acquisition of the construction, property management and modular building business units of Rapley Wilkinson.

Nomad acquires Rapley Wilkinson for $40m

Henderson-based Nomad building Solutions Ltd has announced today the $40 million acquisition of the construction, property management and modular building business units of Rapley Wilkinson.

Rapley Wilkinson is owned by entities associated with Alan Thomas, Daryl Rapley and Darren Staunton.

The senior executives of Rapley Wilkinson including the managing director Mr Thomas, will continue to manage the business after the acquisition.

Mr Thomas will join the board of Nomad after completion.

Rapley Wilkinson have operated in Western Australia for around 30 years and specialise in the areas of remote housing construction, commercial construction, resort and lifestyle construction, property and project management services and modular building.

 

Full announcement pasted below:

ACQUISTION OF RAPLEY WILKINSON SHARE PLACEMENT SHARE PURCHASE PLAN

The board of Nomad Building Solutions Ltd ("Nomad") is pleased to advise that an agreement has been executed to acquire the construction, property management and modular building business units of Rapley Wilkinson for $40 million.

Settlement is expected to occur on 29 February 2008 subject to normal conditions precedent being achieved.

The consideration will comprise $14 million of shares issued to the vendors with the balance payable in cash.

The shares issued to the vendors will be subject to escrow of 50% for twelve months and 50% for twenty four months.

The senior executives of Rapley Wilkinson including the Managing Director Mr Alan Thomas, will continue to manage the business after the acquisition.

The company is pleased to advise that Mr Thomas has accepted an invitation to join the board of Nomad Building Solutions Limited following completion.

The company, through Wilson HTM, has placed 11,265,073 shares at $2.35 to institutional and professional shareholders raising $26.5 million. The cash component of the acquisition, the acquisition costs and the placement fees will be funded through the placement, a share purchase plan and if necessary existing debt facilities.

The share purchase plan, which is open to all eligible shareholders on the register at 14 January 2008, is being undertaken to provide existing shareholders the opportunity to acquire shares on similar terms to those issued through the placement and as part of the capital management of the balance sheet.

Rapley Wilkinson have operated in Western Australia for around 30 years and specialise in the areas of remote housing construction, commercial construction, resort and lifestyle construction, property and project management services and modular building.

The Board believes this to be an integral part of Nomad's strategic plan to provide a solutions based offering with respect to remote accommodation and other targeted sectors.

Some of the key benefits of the acquisition include: increased modular building capacity increased presence within the remote Western Australian housing markets enhanced skill base in design, project management and project planning services the ability to bring a proven resort designer and builder to provide a higher level of accommodation solutions to the resources, retirement and tourism sectors the ability to use Rapley Wilkinson as the platform to launch Nomad's build, own and operate models to the construction and resources sector expansion into the business of primarily resources based site infrastructure works such as site built administration buildings, warehouses, workshops, laboratories and the like.

The acquisition is earnings accretive and is expected to generate revenues in the 2008/09 financial year of $100+ million with a normalised net profit after tax of around $7 million to $8 million.

Rapley Wilkinson has an extremely strong order book and pipeline, with approximately 75% of revenue for the 2008/09 financial year being booked.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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