Bradken gets takeover offer, says growth not dependent on commodities recovery

Bradken shares soared last Friday on news of a takeover offer from a private equity consortium.

Fairfax reports that the construction and engineering company, which has cut 550 jobs in a restructure over the last year, received a takeover bid worth $872 million from Bain Capital and Pacific Equity Partners.

According to the ASX, Bradken value was up more than any other share, gaining 36.45 per cent over the day.

The company said it was on track to “recharge growth”, with or without a bounce in the currently low commodity prices.

“Of course I'm hopeful for a return, but we're not planning for it,” Fairfax reports managing director Brian Hodges as saying.

“We've planned for the other end and if there is a return, then that will be an extra boost."

AAP reports that growth initiatives for Bradken – which manufactures consumable and capital products for mining, construction, rail and other industries – include continuing to reduce overheads and the acquisition of an Indian foundry for low-cost manufacturing.

The takeover news came after Bradken last week announced it would be closing its Kilburn, Adelaide factory late next year, citing the mining downturn and high local costs.

Image: http://www.foundry-planet.com/

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