GR Engineering Services Limited (ASX:GNG) (GR Engineering or the Company) is pleased to announce that its wholly owned subsidiary, Mipac Holdings Pty Ltd (Mipac) has entered into an agreement to acquire Paradigm Engineers Pty Ltd (Paradigm), a provider of control systems and electrical engineering, automation and technology services based in Western Australia.
- This transaction enhances Mipac’s control system and electrical design capabilities and expands its existing footprint in Western Australia. Paradigm has significant expertise working across a range of commodities, including iron ore, gold and battery minerals.
- Paradigm is forecasting FY24 revenue of $16 million and an EBITDA margin % consistent with Mipac. Similar revenue is anticipated for FY25, supported by Paradigm’s current order book and pipeline. The combined Mipac and Paradigm business is expected to generate revenue of approximately $50 million on a proforma basis.
- Paradigm’s current management team have agreed to continue in their roles post-completion.
- The purchase price is $9 million, with 50% payable in cash and 50% payable in GR Engineering scrip, subject to voluntary escrow. It is anticipated that the transaction will be immediately earnings per share (EPS) accretive.
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About GR Engineering
GR Engineering specialises in providing fixed price engineering design and construction services to the global resources and mineral processing industries. GR Engineering has a proven track record of delivering integrated project solutions in over 20 countries across all major commodity types. As a group, GR Engineering employs more than 500 professional, technical and support staff throughout Australia and internationally, in addition to a direct construction workforce and subcontracted personnel.
GR Engineering Services Limited is listed on the Australian Securities Exchange (ASX: GNG).
For further information please contact:
+61 8 6272 6000
CFO & Company Secretary
+61 8 6272 6000
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