The strategic acquisition will see Verbrec add scale to its existing pipelines business unit as well as diversifying its existing revenue streams as a significant portion of EIM’s revenue comes from operations and maintenance contracts, including a three-year extension on an Arrow Energy contract.
The purchase will cost $10.056 million with $7.455 million of the price being working capital, making the final purchase price subject to the customary up or down adjustment on the closing working capital position.
Upon signing the agreement, Verbrec Managing Director Linton Burns said it is a compelling and transformational acquisition that demonstrates the first stage of the company’s refocused growth strategy.
“EIM is a leader in the Australian engineering sector with a number of large tier-1 customers,” said Mr Burns.
“It adds scale and capability to our existing pipelines business unit and is expected to integrate into this business unit seamlessly.
“We are excited to welcome the highly experience team at EIM to Verbrec.”
For more information visit the Verbrec website.
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