SYDNEY, AUSTRALIA: MCS Services Limited has signed a Binding Terms Sheet for the acquisition of 100% of the share capital of Highways Traffic Pty Ltd, a premier provider of trained Traffic Management manpower and assets in Western Australia.
The acquisition allows MCS Services to bring to bear its core management strengths into a separate market from the provision of security guards, bringing the benefits of diversification to the company.
The purchase consideration is:
– $1.8 million cash on Settlement, which MCS intends to fund from MCS’s existing cash reserves;
– $260,000 worth of ordinary shares in MCS Services Ltd, issued on Settlement, calculated at the 15 day weighted average, escrowed for 12 months;
– Up to a total of $0.54 million payable post-settlement, in quarterly instalments, subject to Highways Traffic’s revenue performance tracking at $7m per annum;
– Up to an additional $0.35 million payable post-Settlement conditional on Highways Traffic’s revenue exceeding $8.4m in the 12 months post-Settlement
Highways Traffic is ISO certified and has been in operation for 20 years. It’s recent work portfolio includes many of WA’s largest road construction and improvement projects, working for main contractors.
Highways Traffic has depots and personnel in Perth and Kununurra and provides traffic management solutions in the metropolitan area and beyond, having administered traffic support from the Wheatbelt and the South West, out to the Great Southern as far as the Eyre Highway on the Nullarbor and through the Goldfields, Mid-West and Gascoyne to the Pilbara and Kimberley.
Highways Traffic’s traffic control services cater from large multi-crew projects with a long-time frame through to small one-off jobs.
Highways Traffic is a Main Roads accredited service provider with third-party certifications in occupational health & safety and quality management systems. All aspects of work adhere to the Main Roads Code of Practice for Traffic Management for Works on Roads and Traffic Management for Events, as well as comply with the Australian Standard 1742.3 – 2009.