Otoc buys another business

Diversified contractor OTOC has made another east coast acquisition, announcing today the purchase of surveying consultancy Lawrence Group for up to $5.85 million in cash and shares.

Otoc will pay $3.85 million in cash and will issue about 4.9 million shares at 20.2 cents each (equal to about $900,000) to acquire Lawrence, while a further $1 million in cash will be paid subject to the target achieving certain performance milestones.

Lawrence is a Sydney-based surveying consultancy business with clients in the residential and commercial construction, civil infrastructure and land development sectors.

Its clients include Lendlease, Thiess and Parkview.

The acquisition will further grow Otoc’s presence on the east coast, adding to the group’s portfolio of subsidiaries in the area including Linker Surveying, Whelans, Bosco Jonson, Geo-Metric Surveying ant THG.

Otoc chief executive Simon Thomas said the acquisition would help position Otoc as a market leader in NSW.

“Shane Lawrence and his team are highly regarded within the industry and bring significant experience across the property, construction and infrastructure sectors,” he said.

“I look forward to working with the team and supporting the exciting growth outlook for the business.”

The purchase price represents a four-times multiple of Lawrence’s earnings before interest, tax, depreciation and amortisation for the 2016 financial year.

The deal is expected to be completed by next month.

Otoc shares were 2.2 per cent higher to 22.5 cents each at the close of trade.