Sydney, Mar 17, 2008 AEST (ABN Newswire) - Hastie Group Limited (ASX: HST), Australasia's leading building services and refrigeration systems group, today announced the expansion of its commercial hydraulics business to Queensland through the acquisition of Beavis & Bartels and GTS Plumbing.
The combined purchase price consists of initial payments of $21.5 million in cash, financed from existing debt facilities and representing a FY2007 historic EBIT multiple of 3.2X, plus a performance-based earn-out over the next two years.
'These two acquisitions are the next significant step in our stated strategy to build a national commercial hydraulics business, following the acquisition of CDC Plumbing & Drainage in Victoria,' said Mr David Harris, Group Managing Director and CEO. 'These complementary businesses will continue to operate in their specialist markets and will enhance our opportunities to cross-sell our air conditioning and electrical services and grow our multi-service offering.
'Our Australian businesses are continuing to grow strongly and since January we have secured new confirmed orders for air conditioning, electrical and hydraulics services totalling almost $200 million. These are in addition to the new multi-service work totalling $70 million in the United Arab Emirates which we announced in February.
'Hastie remains on track to increase earnings per share by around 50 per cent in FY2008. Further strong growth is anticipated in FY2009 when results will include a full year's contribution from the Rotary acquisition, which was announced in February 2007.'
Both Beavis & Bartels and GTS Plumbing have been acquired from their management, who will continue to run the businesses.
Beavis & Bartels, established in 1954, installs plumbing and drainage systems in large nonresidential buildings and facilities in the Brisbane region.
GTS, founded in 1993, specialises in plumbing and drainage systems for high-rise buildings throughout Queensland, with teams based in both Brisbane and Townsville. The businesses have a combined workforce of around 150 staff.
Hastie Group Limited is the largest commercial and industrial air conditioning, refrigeration, electrical and hydraulics group in Australasia, with subsidiaries active in the UK and UAE. It has in excess of 4,000 employees based at over 50 locations. The group operates under brands which are well recognised in their markets, and customers include many of the largest construction companies, shopping centre groups, industrial corporations and facility managers. Hastie Group Limited is a member of the S&P/ASX-300 Index.
Contact
David Harris
TEL: +61-2-9714-2180
Media enquiries:
Anthony Tregoning
Financial & Corporate Relations
TEL: +61-2-8264-1000
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