Downer EDI will buy privately owned Tenix Holdings Australia, signing an agreement worth $300 million which will be completed at the end of the month.
In a statement to the ASX, Downer said it would acquire Tenix on a cash and debt-free basis, claiming it as a perfect strategic match which would expand capabilities at a fair price.
“There is little overlap between the two companies and Tenix will be the foundation for a new core utilities business for Downer,” said Grant Fenn, CEO of Downer.
There was strong growth potential with Tenix (owned by the Salteri family), said Fenn, with Tenix a leader in electricity, gas and water markets in Australia and New Zealand.
The acquisition would form the core of a new utilities business for Downer.
The transaction would be funded “through a $300 million committed bank debt facility” read the statement and be completed on October 31.
Image: Jessica Shapiro