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SRG GLOBAL LIMITED — M&A Activity 2011
Jun 22, 2011
65852_rns_2011-06-22_0891aa3d-e5cc-494f-a942-a6d685c50cee.pdf
M&A Activity
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23 June 2010
ASX / MEDIA ANNOUNCEMENT
GCS COMPLETES ACQUISITION OF GIS
Construction services group Global Construction Services Limited (ASX: GCS, “GCS Group”) is pleased to announce it has completed the settlement to acquire leading specialised labour hire provider Global Industrial Services Pty Ltd (GIS).
The acquisition is effective from 3 June 2011 and was for a total consideration of approximately $40m, made up of a $16.4m cash payment and the issue of 14.3 million shares in GCS to the GIS vendors’ which has been approved by shareholders. The cash component of the consideration has been funded via a placement to institutional and sophisticated investors.
“ The completion of the GIS transaction is a major milestone for the group. As a strategic fit, GIS complements the existing operations and enhances our product offering and growth opportunities,” said GCS Group Managing Director, Mr Enzo Gullotti.
The acquisition is expected to be EPS accretive in FY12 and will deliver strong margins and positive cash flows to the group.
-ENDS-
ABOUT GCS GROUP
GCS Group (ASX: GCS) is a diversified construction services company that supplies an extensive range of labour services and equipment to the construction and maintenance industries including hire and sales of scaffolding, formwork, material hoists, temporary accommodation, temporary fencing and general plant hire together with related design services.
GCS Group’s strategy for growth is to focus primarily on servicing the West Australian construction, oil and gas and mining services sectors. In addition, the Company intends to explore opportunities in new markets, diversify into related industry sectors and acquire selected new businesses that create value for shareholders.
FURTHER INFORMATION
Enzo Gullotti
Managing Director +61 8 9479 7990
Or visit: www.gcs-group.com.au
Global Construction Services Limited ABN: 81 104 662 259 2 Redcliffe Road, Redcliffe WA 6104 Ph: +61 8 9479 7990 Fax: +61 8 9479 7789