WestStar has received shareholder approval for its proposed acquisition of Alltype Engineering in a deal worth around $6 million in shares.
Alltype is a supplier of pipework systems, structural steel, plate fabrication, site installation and maintenance services that delivered a revenue of $29.8 million in the 2019 financial year.
The acquisition will broaden WestStar’s service offering once the proposed transaction is complete.
WestStar can earn up to $2.5 million additional shares on achieving an earnings before interest, tax, depreciation and amortisation (EBITDA) target of $2.5 million.
According to WestStar, Alltype is highly complementary to the existing WestStar Group and significant synergies and cost savings are expected to be realised in the newly formed group.
“Alltype Engineering is an established and well-respected name in the industry,” WestStar Group chief executive Robert Spadanuda said.
“We are pleased to add their capabilities to the WestStar Group and welcome their team as we look to target annual revenues of $100 million.
“With Alltype, growth in SIMPEC and execution of our growth strategy, we look forward to building a strong, diversified, engineering company.”
WestStar will gain significant steel fabrication capability from a 6000 square metres fully equipped workshop and industrial maintenance services capacity including shutdowns and mechanical upgrades.