17/07/2013 - 15:37

OTOC buys big Fortescue kitchen

17/07/2013 - 15:37

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OTOC buys big Fortescue kitchen
OTOC's chief executive officer, Adam Lamond

Perth-based contractor OTOC announced today it has acquired full ownership of a 700 person commercial kitchen/diner facility at a Fortescue Metals Group site.

The company previously held a 50 per cent stake in the kitchen through its subsidiary OTOC Australia but has now acquired the remaining 50 per cent for $2 million.

OTOC's chief executive officer, Adam Lamond was pleased with the acquisition.

"The kitchen is an important part of FMG's operations at Camp 25 and as such provides a long term income stream for OTOC," he said.

In the announcement today OTOC said the purchase was in line with its strategy of growing its facilities division and associated revenue base.

Following the acquisition OTOC Australia's facilities division now expects to generate an EBITDA of $1.7 million for the financial year ending June 2014.

The $2 million acquisition will be funded by a drawdown of a newly established equipment finance facility.

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