ASX-listed Engineering company Monadelphous has agreed to pay an initial A$22 million for Australian mechanical and electrical services business BMC, with the price to be finalised over the next month.
Monadelphous said Victorian-based BMC provided specialist high-voltage and instrumentation installation, calibration and maintenance services across the power, petrochemical, pulp and paper, mining, oil and gas and renewables sectors. It had about 180 employees and generated circa-A$60 million of revenue last year.
“The acquisition of BMC is a key enabler to Monadelphous’ strategic efforts in developing its presence in the east coast-based energy generation, transmission and storage market, supporting Australia’s transition to clean energy,” Monadelphous said.
“BMC’s geographical location further strengthens Monadelphous’ position as a maintenance services provider to the growing offshore oil and gas decommissioning sector on the east coast of Australia.”
Monadelphous said the purchase price might be adjusted to take account of BMC’s final net working capital position when the transaction was concluded, expected to be by the end of June.