aiM acquisition puts Simon on front foot
MINING and engineering contractor Henry Walker Eltin’s subsidiary, Simon Engineering, hopes to more than double its revenue through the acquisition of Perth-based aiM Maintenance Ltd.
The wholly owned subsidiary, with a revenue base of about $40 million, will acquire aiM for $9.274 million cash plus a deferred payment of $750,000, subject to financial performance over the next two financial years.
Established in 1991, aiM is half owned by listed engineer aiLimited and employs approximately 280 people in the mining, oil and gas and power generation maintenance industries throughout Western Australia.
Settlement of the deal is expected in late April or early May.
The agreement contains conditions, however, including the satisfactory conversion of aiM’s clients to Simon Engineering.
Its client base includes BHP Billiton, Hamersley Iron, WMC Resources, Wesfarmers, Iluka, Tiwest, Western Power Corporation and the Fremantle Port Authority.
Simon Engineering chief executive officer and managing, director Bruce James, said the acquisition would enable the critical mass required for market penetration and diversification in the Western Australian maintenance services sector.
Mr James said the two would complement each other to create turnover of more than $100 million for Simon Engineering in WA.
Henry Walker Eltin’s share price closed steady at $1.05 on Tuesday.
- Jim Hawtin