VDM Group announced today the acquisition of WA-based engineering consultancy BCA Consultants at a purchase price of $5.2 million.
VDM Group announced today the acquisition of WA-based engineering consultancy BCA Consultants at a purchase price of $5.2 million.
Full announcement pasted below:
VDM Group Ltd (ASX: VMG) today announced the acquisition of the
Western Australian-based mechanical, electrical and fire engineering consultancy practice
BCA Consultants (BCA).
The purchase price is approximately $5.2 million comprising approximately $3.25 million in
cash and approximately 1.3 million VDM Group shares, with the final amounts to be
determined after completion of the 2008 accounts for BCA. The shares will not be eligible to
participate in VDM Group's final dividend which is proposed to be paid in November 2008.
The purchase price represents an earnings before interest and tax (EBIT) multiple of
approximately 3.3 for the average EBIT over the 2007 and 2008 financial years.
BCA provides a full range of building services disciplines including mechanical, air
conditioning, electrical, vertical transportation, fire and life safety, hospital, Australian Building
Greenhouse Rating (ABGR), energy management, industrial, security, communication and
Green Star consulting. BCA also provides specialist input services in the critical areas of
energy, auditing and management, ESD commissioning, contract administration, quality
control and the ongoing service maintenance of buildings. BCA employs approximately 30
staff in its Perth office.
Commenting on the proposed acquisition, VDM Group Chief Executive Officer, John Farrell,
said: "BCA fits our acquisition model perfectly. It provides traditional mechanical, electrical,
fire and vertical transportation consulting engineering services together with specialist lighting
design services. VDM Group's consulting division currently does not have in-house expertise
in these areas."
BCA's Managing Director, Rod West, said: "We are delighted to be joining the VDM Group of
companies. VDM Consulting and BCA have worked alongside each other for many years
and we have a mutual respect for each other's capabilities."
