Australia-based engineering services and project development company Calibre Group (CGH) has acquired coal mining services provider G&S Engineering Services for $39.2m.
The group will also issue 14.2 million shares under the deal.
Projected to generate $160m in revenue and $10m in EBITDA for the company in the 2012-13 financial year, the acquisition will expand the group’s coal sector revenues to 22% from the current 5%.
Calibre will also enhance its mine operating services – particularly in the Queensland’s coal sector- while gaining capital for operating expenditure and recurring revenue streams.
Calibre’s managing director Rod Baxter said, "We also intend to build on Calibre’s strong presence and relationships in the iron ore sector to introduce G&S’s maintenance and asset management capabilities, strengthening our growing exposure to the substantial sustaining capital expenditure in the sector.
"In addition, through this acquisition we believe that G&S will substantially leverage the combined capabilities of Calibre’s businesses to enhance the Group’s position in the Australian East Coast coal sector," said Baxter.
Image: Calibre’s acquisition of G&S will help expand its coal mining business in Australia. Photo: Calistemon