02/08/2017 - 13:20

WestStar buys local business

02/08/2017 - 13:20

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Precast concrete business WestStar Industrial has acquired a recently formed Perth concreting business in an all-scrip deal worth about $2.2 million.

WestStar buys local business
WestStar shares gained ground on news of the acquisition.

Precast concrete business WestStar Industrial has acquired a recently formed Perth concreting business in an all-scrip deal worth about $2.2 million.

Perth-based WestStar, which listed on the ASX in July last year after completing a reverse takeover of Antares Mining, will pay an initial 37.5 million shares to acquire SIMPEC, plus a further 62.5 million shares subject to the achievement of certain performance milestones.

The target was incorporated as a private company in May by managing director Mark Dimasi – a long-serving UGL construction manager – and director David Dimasi.

“While successfully building up the precast business order book, we have been looking for strategic acquisitions such as this and I am thrilled to welcome the SIMPEC team to WestStar,” director Bert Mondello said.

“Mark Dimasi and David Dimasi are industry-recognised leaders in their field and have been the key operational construction and electrical personnel for UGL’s major projects over the past 20 years.

“This transformational acquisition is a key milestone for WestStar to fast-track growth and build a substantial construction company.

“Any contracts signed by SIMPEC in their focus range will be material to WestStar.”

The acquisition follows news last month that WestStar had received $1.7 million worth of new contracts with a range of retail clients, including for work on the Westfield Carousel redevelopment.

That followed news in June that the company had won a $1 million contract for work on the Forrestfield airport rail link project by head contractor Salini Impregilo.

WestStar shares were 5.2 per cent higher to 2 cents each at 1:15pm.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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