Valmec buys APTS

Local engineering and construction group Valmec has announced it will purchase Henderson-based specialist pipeline testing company APTS, which was recently put into receivership.

Under the agreement, Valmec will acquire APTS’s plant and equipment, around $5 million of service contracts, and the company’s 55 employees.

APTS was established in 2003 and has offices and laboratory testing facilities in Perth and Brisbane, with contract operations in Karratha and Darwin.

The company won a Business News Rising Stars award in 2011 after chief executive Paul Newbound expanded APTS to 140 staff and a turnover of nearly $40 million.

Company revenue has averaged around $20 million during the past four years.

The company was put into receivership last month with ‘poor financial control’ listed as the reason for distress.

Valmec managing director Steve Dropulich said the acquisition was a key milestone for his company.

“We are excited about the synergies and the new business growth opportunities that APTS will ultimately deliver to Valmec,” he said

“The acquisition of the APTS business and assets, together with the engagement of over 50 new experienced and industry recognised staff, further expands Valmec’s capabilities in the energy and infrastructure sector.

“This acquisition and the opportunity to leverage off Valmec’s growing footprint within the expanding Australian gas sector, aligns perfectly with our strategy of delivering value to our clients across every aspect of our operations.”

In a statement to the ASX, Valmec said APTS’s sales presence on the east coast of Australia was highly complementary to the engineering company’s expected expansion of the east coast sector over the next five years.

Valmec shares were up 1 cent or 4 per cent at 26 cents at 2:30 AEDT