SYDNEY, AUSTRALIA: Aquirian Limited (ASX: AQN) has entered into a binding agreement to acquire the business and assets of Cybem Mechanical Services Pty Ltd for an enterprise value of $3 million.
The acquisition represents an operating EBITDA multiple of 2.89×1 (pre synergies and integrations costs), and allows for further significant efficiencies to be leveraged, with common customers.
Aquirian Managing Director and CEO, Mr David Kelly, said: “This exciting acquisition represents a significant step in realising Aquirian’s strategy of becoming a leading provider of equipment and associated services, while maximising shareholder value.”
“The acquisition of a business like Cybem will allow Aquirian to enhance its maintenance capabilities to support the growth in our rental business, strengthen our customer offering to existing customers and increase our customer diversity with the introduction of new customers.”
“Aquirian Limited is pleased to retain the experienced and well-respected Cybem leadership who share a common focus, culture and values with Aquirian. We look forward to welcoming Cybem employees into the Aquirian Group and to combining Cybem’s capabilities with our existing teams to execute on our strategy.”
“We believe the Acquisition will deliver long term value to our shareholders.”
Founded in 2005, Cybem Mechanical Services has built a reputation as a trusted provider of on-site labour support, field service and mechanical repair services. The management and operational teams have extensive OEM, on-site and process experience. Cybem has averaged $9.5 million revenue and $1 million EBITDA 3 over the last four (4) years. www.cybem.com.au
The Acquisition will be fully debt funded utilising a new debt facility being established with the National Australia Bank (NAB). Aquirian will also be increasing its existing Equipment Financing Facility with NAB from $5 million to $7.5 million, allowing flexibility and certainty in growing its rental fleet.
Aquirian is an emerging specialist mining services company providing people, equipment and innovative products that support mining clients across their operations.