SIDNEY, AUSTRALIA: Mipac Holdings Pty Ltd, a subsidiary of GR Engineering Services Limited, has agreed to buy Paradigm Engineers Pty Ltd, a Western Australian company that provides control system and electrical engineering, automation and technology services to the mining industry.

The deal, worth $9 million, will enhance Mipac’s capabilities and expand its footprint in Western Australia, where Paradigm has a strong track record and long-term relationships with Tier 1 mining clients. Paradigm’s management team will continue to lead the business after the acquisition.

Mipac expects the transaction to be immediately earnings per share accretive and to increase its proforma revenue to about $50 million, supported by a combined workforce of 175 personnel. The purchase price will be paid 50% in cash and 50% in GR Engineering shares, subject to voluntary escrow.

The acquisition is subject to customary conditions and third party consents and is expected to be completed by 29 February 2024.

Commenting on the acquisition, Mr Tony Patrizi, Managing Director of GR Engineering said: “Mipac has been a successful transaction for GR Engineering and has achieved solid revenue and EBITDA growth since acquisition, whilst importantly retaining its key personnel and its long term client relationships.
The acquisition of the Paradigm business, fast tracks Mipac’s growth in Western Australia and increases the scale of the Mipac business. We welcome the highly skilled and well regarded Paradigm team and look forward to working with them.

Paradigm’s Managing Director, Mr Garry McGrechan, said: “Paradigm is excited to join Mipac and the GR Engineering Services group. The combination of the two teams presents significant opportunities to grow our operational technology and digital solutions in the mining and mineral processing industries both nationally and internationally.”