Otoc buys Lester Franks for $5m

Perth-based OTOC has further expanded its operations with the acquisition of Tasmanian business Lester Franks Survey & Geographic for up to $5 million in cash and shares.

Otoc will pay $3.1 million in cash and $500,000 in shares to buy Lester Franks, which specialises in geospatial, surveying and engineering, and incorporates 3D laser scanning and metrology into its operations.

A further $1.4 million cash payment will be made subject to the achievement of performance milestones by Lester Franks.

The total purchase price represents earnings before interest, tax, depreciation and amortisation of a multiple of four, and will be funded from Otoc’s existing cash reserves.

Lester Franks was established in Tasmania in the 1960s and has since branched out by acquiring operations in Victoria, Queensland and South Australia.

It has also secured work with BHP Billiton at the miner’s operations in Western Australia.

Under the terms of the deal, Lester Franks managing director Malcolm Lester will continue to manage the business.

“We are delighted to announce the addition of Lester Franks to Otoc’s national surveying business,” Otoc chief executive Simon Thomas said.

“Malcolm Lester and his team bring a wealth of expertise in modern surveying technology and equipment, including precision 3D laser scanning that is in high demand from our clients.”

Otoc shares were 2.9 per cent higher to 24.7 cents each at 10am.