ASX-listed engineering company Monadelphous Group is paying an initial A$10 million (US$6.4 million) for Western Australia-based structural concrete and connected works business, Melchor Contracting.
Seven-year-old Melchor, which does earthworks, formwork, reinforcement fixing and concrete placement in the resources, energy and infrastructure sectors, is said to employ about 300 people and turn over about A$100 million a year.
“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,” Monadelphous said.
“The company expects the transaction to be completed in the first half of the current financial year.”
