12/03/2014 - 16:07

Viento swoops on Powins

12/03/2014 - 16:07

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Contractor Viento Group will take a controlling stake in electrical switchgear firm Power Infrastructure Services (Powins) in a deal worth $400,000.

Viento swoops on Powins

Contractor Viento Group will take a controlling stake in electrical switchgear firm Power Infrastructure Services (Powins) in a deal worth $400,000.

Viento said its wholly-owned subsidiary HVLV, which manufacturers transportable switchrooms, had agreed to acquire an additional 40 per cent stake in Powins, taking its share in the company to 55 per cent.

As part of the deal, HVLV will pay $200,000 in cash and issue $200,000 worth of Viento shares for the interest.

The shares will be issued at a five-day volume-weighted average price prior to the settlement.

Powins, which has offices in Perth and Brisbane, was founded in March last year and is forecast to achieve revenue of $17 million in its first full year of production, according to Viento.

Viento said it expected to receive $6 million in revenue from Powins from March 30 to the end of June.

The deal comes just months after Viento acquired Hazelmere-based HVLV in a $21 million deal in January.

Viento executive chairman Ray Munro said the consolidation of Powins and HVLV helped to create a strong electrical services provider operating in the mining, oil and gas and heavy industries sectors.

“Working together, HVLV and Powins can provide end-to-end electrical solutions for their clients and continue to diversify their product offering,” he said.

Viento said while the board of HVLV would provide support to Powins, the company would continue to be managed as a standalone entity.

Malcolm Guy will remain as Powins’ operations director of Western Australia and Northern Territory, and Dean Van Wijk has been appointed as operations director of the Queensland division.

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