AI assistant
IMDEX LIMITED — M&A Activity 2011
Aug 15, 2011
65119_rns_2011-08-15_b4d431e9-907c-40be-8ea7-aa24c4dd08fa.pdf
M&A Activity
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16 August 2011
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Company Announcements O f fice ASX Limited Exchange Centre 20 Bridge Street SYDNEY NSW 2001
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Dear Sir/Madam
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Completion of ADS acquisition
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Attached is an announce m ent in relation to the above mentioned subj e ct for release to the market.
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Yours faithfully Imdex Limited
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Paul Evans Company Secretary
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16 August 2011
ASX and Media Announcement
Completion of ADS acquisition
Further to the announcement on 26 June 2011, Imdex Limited (ASX: IMD) today is pleased to announce the completion of the acquisition of Australian Drilling Specialties Pty Ltd (ADS) effective from 1 July 2011.
Bernie Ridgeway, Managing Director of Imdex said,
“ADS is an important strategic acquisition for Imdex enhancing our mining and oil & gas drilling fluids manufacturing capability and providing Imdex with control over the supply chain and intellectual property and technology ownership. The acquisition complements our existing Drilling Fluids and Chemicals operations and delivers additional growth opportunities in key market segments, as well as enhanced product and service delivery opportunities for customers.”
“In addition, the acquisition will deliver operational efficiencies and growth opportunities. Presynergies, the acquisition will be immediately earnings per share accretive.”
Acquisition price
As announced on 26 June 2011 Imdex acquired ADS for a consideration of $12 million. The consideration was satisfied by the payment of $6 million in cash and $6 million in Imdex shares valued at the five day VWAP prior to completion, being $1.871 per share resulting in an issue of 3.2 million Imdex shares.
The acquisition will be funded from existing cash resources.
Earnings accretion
Revenue for ADS for the 12 months ended 30 June 2011 was $9.3 million resulting in pre-tax earnings of $2.4 million. The acquisition price represents a 5 times multiple of pre-tax earnings for the year ended 30 June 2011 and will be immediately earnings accretive.
About Imdex
Imdex is a Perth based public company listed on the Australian Securities Exchange, whose core business is the supply of drilling fluids and chemicals and down hole instrumentation in Australia and internationally to the oil & gas, mining, water well, horizontal directional drilling and civil industries
For further information, please contact: Bernie Ridgeway , Managing Director; Paul Evans , Chief Financial Officer and Company Secretary +61 (0)8 9445 4010
IMD1003.60617.1
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