Watpac to acquire JMS Civil & Mining

Brisbane-based contractor Watpac Ltd is set to acquire JMS Civil and Mining Pty Ltd Group, which counts the state's Water Corporation and the Department of Main Roads as clients.

Below is the full Watpac announcement:

Watpac Limited has taken today its first steps into becoming a national business by acquiring the JMS Civil and Mining Pty Ltd (JMS) Group, a business expected to generate around $120 million in revenue in the 2008/2009 financial year.

The purchase price paid for JMS by Watpac is subject to confidentiality, but is immaterial in value when compared to Watpac's total assets.

The move is Watpac's first foray into markets beyond the eastern seaboard, and follows the company's strategic plan of both product and geographic expansion, while building on its existing portfolio and skills sets.

Greg Kempton, Watpac Managing Director, said he believed the acquisition of JMS would complement Watpac's existing construction business, particularly in regional areas.

"Watpac is a company that continuously aims to improve its earnings per share and long-term profitability, and we do this through strategic and intelligent acquisitions," Mr Kempton said.

"While our construction, property, and specialty services divisions are well established in Queensland, New South Wales, and Victoria, the acquisition of JMS provides a platform to capture strong opportunities in the mining and emerging infrastructure sectors.

"Coupled with Watpac's strong balance sheet and experienced management team, JMS will have the capacity to undertake much larger, long-term projects right across Australia."

JMS already has a strong reputation in the mining, civil engineering, and infrastructure development sectors, providing services for major clients including BMA, Xstrata, Rio Tinto, WA Water Corporation, and The Department of Main Roads.

JMS currently has around 250 employees, specialises in working in remote and logistically difficult locations, supported by offices in Brisbane, Perth, Adelaide, and Townsville.

The acquisition sees Watpac now become a truly national company, with more than 800 staff Australia-wide.
Mr Kempton said he was confident that JMS's existing reputation would be an asset to Watpac.

"JMS is a fourth-generation company with a strong history in developing successful long-term relationships with its partners and the community, and we will continue to build on this strength in the future," he said.

"We're looking forward to the many opportunities that the JMS acquisition will create for us across Queensland and Australia."