SYDNEY, AUSTRALIA: Engineering company Monadelphous Group Limited (ASX:MND) has entered into an agreement to acquire Melchor Contracting, a Perth-based structural concrete and associated works business.
Melchor Contracting offers a full structural concrete package capability, including detailed earthworks, formwork, reinforcement fixing and concrete placement in the resources, energy and infrastructure sectors.
It currently employs around 300 people and generates revenue of approximately $100 million per annum.
The acquisition of Melchor Contracting is aligned to Monadelphous’ markets and growth strategy, broadening the Company’s multidisciplinary construction offering to include civil capability.
Monadelphous will make an initial cash payment of $10 million to acquire Melchor Contracting, followed by a purchase price adjustment in accordance with the final working capital position at completion.
The Company expects the transaction to be completed in the first half of the current financial year.