The founders of Canning Vale-based contractor Tasman Power have agreed to sell the business to Adelaide company E&A for $12.1 million.
The acquisition will be financed through the issue of about 4.13 million E&A shares, cash and bank debt.
E&A’s opening share price of 50 cents per share on the ASX today values the share issue at just under $2.1 million, implying the balance of $10 million will be paid in cash.
Tasman Power was established in 2007 and has targeted work opportunities in the Pilbara.
Managing director Jason Pryde will retain his role and has entered into a five-year employment agreement, while operations manager and executive director Mark McDonnell will also retain his role.
E&A executive chairman Stephen Young said the acquisition would provide the company with an opportunity to expand its geographic footprint in Western Australia.
With 120 employees working in the Pilbara, Tasman Power provides specialised electrical and instrumentation installations, as well as shutdown maintenance.
Its employees are contracted in variations – from one day’s work to 18-month contracts.
Last year, the company built a drill rig dedicated to installing earth rods for power supply.
The technology was a hit with its clients, so the company bought a second drill rig to keep up with demand.
The transaction is scheduled to be finalised tomorrow.
