Viento buys HVLV for $21m

Mining services provider Viento Group has struck a $21 million deal to buy portable switchroom manufacturer HVLV.

The acquisition sees Viento paying HVLV founder Steve De Mol about $11 million in cash plus $10 million in shares.

The sale initially increases Mr De Mol's shareholding in Viento to 13 per cent. He has been appointed to the emerging contractor's board.

Hazelmere-based HVLV makes switch rooms for mining, oil and gas, and industrial projects. It has an 8000 square metre workshop on a 4.5 hectare leased site.

Viento said the manufacturer recorded revenue of $44 million in 2012-13. It expected HVLV to contribute $35 million revenue for the six months ended June 30.

"HVLV represents a fantastic opportunity to enter this specialised market via a proven performer and market leader," Viento executive chairman Ray Munro said.

"My vision is to build HVLV into a company which offers an increased level of construction and electrical solutions to its existing customer base," Mr Munro said.

Mr De Mol said Viento had an impressive team of skilled and experienced managers and directors.

"I see numerous opportunities for HVLV to secure additional work and extend our capabilities with the support of Viento," he said.

Viento's share price closed up 4 cents, or 12 per cent, at 38 cents.