SYDNEY, AUSTRALIA: Saunders International Ltd announced the acquisition of PlantWeave Technologies, a specialist in industrial process automation and electrical solutions.
Saunders International has agreed to acquire the assets of PlantWeave with a non-material upfront cash payment.
The purchase price is aligned to promote continued performance through earnings based deferred consideration consisting of payment to the owners of 45% EBIT in year 1 of this group’s earnings, 30% in year two and 20% in years 3.
The deferred cash payment to be paid or that may be payable under the earn-out plan will be funded from Saunders PlantWeave’s operating cash.
Founded in 2006, PlantWeave Technologies has operated for over 15 years across Australia with its head office located in Sydney and employee numbers varying between 10 to 40 across its office and project site locations.
PlantWeave has established long standing relationships with Tier 1 customers through providing complex industrial automation system solutions within the Oil and Gas, energy, water, building, infrastructure and resource sectors.
PlantWeave’s existing management team have committed to continuing their roles in the Saunders PlantWeave business. The team is aligned to Saunders values and One Team culture.
Saunders anticipates that the acquisition will be earnings per share (EPS) accretive post integration. PlantWeave is forecasting FY22 revenue of circa $5 million which is expected to grow in future years.
The acquisition of PlantWeave provides Saunders with an opportunity to expand its technical service offering to its existing clients in the Oil & Gas and Resources sectors. The diversified service will assist with accelerating market penetration into the Defence and Utilities (Power and Water) sectors.
Saunders customers are increasingly moving towards technology driven solutions and PlantWeave will drive Saunders market entry into Cyber Security, Industrial Automation Systems, Process Optimisation and Industry 4.0 Technologies.
PlantWeave’s Managing Director, Mr Robert Harvey, along with the group’s key management personal have agreed to continue in their positions post-completion.
Chief Executive Officer, Mark Benson said: “We’re pleased to have completed the acquisition of PlantWeave Technologies and we look forward to welcoming Robert and his team into the Saunders Group.
This transaction will expand PlantWeave’s existing capabilities and reach while enhancing our service offering to our existing customer base and diversify Saunders into technology-based infrastructure.”
Saunders International Limited (ASX code: SND) is a multi-disciplined engineering and construction company providing design, fabrication, construction, shutdown and maintenance services to leading organisations across Australia, and the Pacific Region.
Saunders International Ltd share price
0.80 AUD0.00 (0.00%)today
2 Aug, 10:09 am GMT+10 ·Disclaimer
Leave a Reply