Infrastructure group Cardno has acquired mining contractor BEC Engineering.
Cardno paid $45 million for the acquisition of the electrical engineering services firm.
Andrew Buckely, Cardno’s managing director, said “BEC brings Cardno specialised electrical engineering expertise in the mining and resources sector, an area into which we have been planning to expand for sometime. Their focus on the resources sector also gives us greater exposure to a market with significant growth potential over the next few years.”
BEC MD Geoff Bailey agreed, saying the electrical contractor’s acquisition will enable BEC to take advantage of the major projects that are emerging.
The acquisition will be funded by a mix of cash and scrip at ratio of three to one.
Approximately 2 038 000 shares will be issued at price of $5.52.
The cash component will be funded from cash on hand and debt facilities with HSBC Australia.
BEC has experience in electrical design; instrumentation; power systems; power generation/transmission and distribution; and control and communications systems.
It has worked primarily in minerals processing plants.