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SOUTHERN CROSS ELECTRICAL ENGINEERING LTD — M&A Activity 2009
Jun 16, 2009
65884_rns_2009-06-16_7844f4b2-5ac8-473a-9e6b-6a7c6a160454.pdf
M&A Activity
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SOUTHERN CROSS ELECTRICAL ENGINEERING LIMITED
17 June 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 Hindle Group
Southern Cross Electrical Engineering Limited (ASX:SXE) is pleased to announce that it has executed an agreement today to acquire FMC Corporation Pty Ltd which operates the Hindle Offshore Services and Hindle Electrics (“Hindle”) electrical maintenance businesses with completion expected to occur on 1[st] July 2009.
Hindle was formed in 1999 to primarily provide electrical maintenance and inspection services to offshore exploration drilling rigs. Hindle’s has a team of specialised electricians with deep experience in the oil & gas sector. The acquisition of Hindle complements SXE’s oil & gas growth strategy and provides a specialist skill set in the important offshore electrical maintenance and inspection markets.
In addition to its offshore capability, Hindle also provides electrical maintenance and construction services to the mining industry.
As part of the agreement, Hindle’s founder, Craig Hindle will join SXE as the General Manager Hindle Electrics/Offshore and will continue to run the business under the Hindle brand. The final consideration will range between $4.6 million and $5.1 million subject to Hindle achieving certain KPI’s over the next two years. The consideration will be paid as a combination of cash and shares. The acquisition is expected to be EPS accretive from completion.
SXE Managing Director, Stephen Pearce, said “he was very pleased to have the Hindle brand and business as part of the Southern Cross Group. Craig and the team at Hindle have done a great job at building the Hindle business in the specialist offshore area and I look forward to Hindle continuing to grow in the coming years. The two businesses have similar service delivery cultures and Hindle will assist with SXE’s oil & gas growth strategy.”
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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]
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]
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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]