Building and communication services company BSA Limited (BSA) today announced that it has entered into a contract to acquire the Allstaff Air Conditioning Group of companies. The contract is expected to complete in early December 2009 subject to the conclusion of final due diligence. Headquartered in Melbourne, Allstaff is a market leader in commercial air conditioning installation and
mechanical services. The business was established in 1975 and has a team of 300 employees operating in Victoria, New South Wales and the Australian Capital Territory. Their customers include Bovis Lend
Lease, Leighton Group of companies, Westfield and Brookfield Multiplex. For the current financial year, Allstaff expects to record revenue of $110 million and it currently has an order book in excess of $80 million. The total purchase price is $13 million made up of $12 million cash and $1 million worth of BSA shares which will be issued to the vendor. In addition to the above the Vendor is entitled to declare a dividend of $23 million from retained earnings, prior to completion. Positive net tangible assets will be retained in the business at completion. The cash consideration will be funded from existing cash on hand and bank facilities. The acquisition is expected to be EPS accretive after allowing for acquisition and integration costs.
The Chairman of BSA Limited, Ross Johnston said, “The expansion of BSA Limited through the acquisition of Allstaff meets all the financial criteria and highlights the solid progress of our Augmentation Strategy. While we are only in the early stages of our Augmentation Strategy, the acquisition of Allstaff adds to our solid foundations and by the end of 2010, we believe we will have established BSA as a strong multi disciplined services business.” BSA’s Managing Director Mark Foley said, “Allstaff is an excellent business and completes an important strategic objective of improving our leadership role in the Building Services space. Allstaff also brings a number of new customers to BSA and takes us into new markets. The business is strong in the healthcare sector which is consistent with BSA’s strategy of building a greater presence in this market. The business has a solid service and maintenance operation with 54 staff dedicated to this division which will significantly increase our recurring revenue base.
www.bsa.com.au
