Engineering company Calibre Group has bought a Queensland mining services company for about $100 million.
Calibre said the acquisition of G&S Engineering Services would increase its exposure to asset management services in the Queensland and NSW coal mining industry.
It said G&S would contribute up to $160 million revenue and $10 million earnings before interest, tax, depreciation and amortisation to Calibre results this financial year.
The Queensland company is headquartered in Mackay and provides a range of services to coal miners like the BHP Mitsubishi Alliance, Anglo American, Rio Tinto Coal Australia and Xstrata. G&S has more than 1000 employees.
Calibre said it would pay about $49 million in cash, $16 million in shares and up to $18 million in a deferred payment. It would also take on about $26 million of G&S' debt.
"G&S represents a transforming opportunity for Calibre to expand its capabilities in operations and maintenance services, and substantially increase the group's revenue exposure to the ongoing capex and opex spend of existing mining operations," Calibre managing director Rod Baxter said.
"We also intend to build on Calibre's strong presence and relationships in the iron ore sector to introduce G&S' maintenance and asset management capabilities, strengthening our growing exposure to the substantial sustaining capital expenditure in the sector," Mr Baxter said.Calibre's share price was up 10 cents, or 10 per cent, to $1.09 at 11.58am.
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