Decmil makes Brisbane acquisition

Decmil says it will acquire Brisbane-based specialist engineering business Eastcoast Development Engineering (EDE).

The company services the mining and energy industries, specialising in the fabrication and installation of high pressure pipes, vessels and tanks.

Decmil said EDE had annual turnover in excess of $80 million and was experiencing significant growth in servicing the coal seam gas industry in Queensland.

"Decmil anticipates the price negotiated with EDE's shareholders will imply an acquisition multiple of less than 3 times FY13 EBITDA," the company said in a statement.

Chief executive Scott Criddle said the acquisition was in line with the company's strategy of diversifying its revenue base and earnings.

"We believe EDE will complement our existing offering, by allowing us to broaden the range of services we can offer our clients, particularly within the oil and gas sector."

The acquisition is subject to due diligence and will be funded from the company's existing cash resources.

Decmil shares were up four cents, or 1.75 per cent, to $2.32 at 8.40am.

The West Australian

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