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SOUTHERN CROSS ELECTRICAL ENGINEERING LTD — Capital/Financing Update 2009
Aug 2, 2009
65884_rns_2009-08-02_3f8575f8-eec2-4192-bd6f-4478c2689a8e.pdf
Capital/Financing Update
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SOUTHERN CROSS ELECTRICAL ENGINEERING LIMITED
3 August 2009
The Manager
Company Announcements Office Australian Stock Exchange Limited Level 4, Stock Exchange Centre 20 Bridge Street SYDNEY NSW 2000
ELECTRONIC LODGEMENT
Dear Sir or Madam
Acquisition of Power Line Business
Southern Cross Electrical Engineering Limited (ASX:SXE) is pleased to announce that it has executed an agreement to acquire the overhead power line business operated by K.J. Johnson & Co Pty Ltd (“KJJ”) for $9.6m. Completion is expected to occur on 7[th] August 2009. The acquisition will be funded from existing cash reserves and represents an EBIT multiple of 2.2x.
As part of the transaction SXE will acquire the assets of KJJ’s including the premises in Bayswater, WA and the business name K.J. Johnson & Co.
KJJ was incorporated over 40 years ago and in recent years has been a major player in the overhead power line construction business in the Western Australian resource market. KJJ has approximately 30 employees and the current General Manager, Mr John North, will be staying on with KJJ as part of the acquisition.
SXE Managing Director, Stephen Pearce, said “the demand for overhead power line construction over the coming years from the resource sector is expected to grow. Southern Cross is already an active participant in this market and the addition of KJJ will increase our capacity to pursue these opportunities. With the strong project pipeline in front of SXE and the recent acquisitions of KJJ and Hindles, SXE’s focus over the next 12 months will be on the strong organic pipeline it has and to complete the integration of the acquired businesses.”
For further information please contact:
Stephen Pearce Stephen Fewster Managing Director Chief Financial Officer Southern Cross Electrical Engineering Limited Southern Cross Electrical Engineering Limited Telephone: +618 9410 1833 Telephone: +618 9410 1833 Email: [email protected] Email: [email protected]
About Southern Cross Electrical Engineering
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A.B.N. 92 009 307 046 EC 001681 41 MACEDONIA STREET, NAVAL BASE, WESTERN AUSTRALIA 6165 TELEPHONE: +61 89410 1833 FAX No: +61 8 9410 1210 Email: [email protected]
SXE was established in 1978 and together with its overseas group of companies, is a dedicated provider of large scale specialised electrical, control and instrumentation installation and testing services for major construction projects in Australia, and throughout the world.
SCEE is a quality endorsed company, with AS/NZS ISO 9001 accreditation and has a strong track record of safety and excellence that is recognised by numerous industry awards over the years. For further information on Southern Cross Electrical Engineering visit www.scee.com.au
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A.B.N. 92 009 307 046 EC 001681 41 MACEDONIA STREET, NAVAL BASE, WESTERN AUSTRALIA 6165 TELEPHONE: +61 89410 1833 FAX No: +61 8 9410 1210 Email: [email protected]