Leading Australian engineering company Monadelphous Group Limited (MND) today announced it had entered into a Memorandum of Understanding (MOU) to acquire onshore pipeline constructor KT Pty Ltd. At this stage, it is considered likely the agreement will be concluded by the end of the 2009-10 financial year. Monadelphous has agreed with KT Pty Ltd’s shareholders to acquire 100 per cent of the shares in KT Pty Ltd for a combination of cash and an issue of shares in Monadelphous. The consideration will comprise an upfront component of $16.5 million and a deferred component payable subject to KT Pty Ltd achieving certain financial targets. The total consideration payable, which will not exceed $30 million, will be based on three times average annualised earnings before interest and tax (EBIT).
Monadelphous Managing Director Rob Velletri said the planned acquisition was a further step in the company’s strategy of diversification. “This will support the expansion of our infrastructure business to continue to drive our successful record of long term growth,” Mr Velletri said.
Monadelphous Group Limited is a leading Australian engineering group providing services to the resources, energy and infrastructure industry sectors. The company has a solid track record in the safe and effective delivery of complex and large-scale engineering construction projects and maintenance and industrial services for industry throughout Australia. Monadelphous’ capabilities encompass civil, mechanical, structural and electrical disciplines. Although the mining sector has been the major focus of Monadelphous’ work, the company is becoming increasingly diversified with growing involvement in the energy and infrastructure sectors.
