GR Engineering Services Limited (ASX:GNG) (GR Engineering or the Company) is pleased to announce that it has entered into an agreement to acquire Hanlon Engineering & Associates, Inc., (Hanlon) based in Arizona, USA.
Hanlon is a multi-disciplinary engineering services firm that provides engineering, procurement and construction management services to the mining sector in North America. Hanlon was established in 1999 and employs approximately 40 people. Hanlon also has a satellite office in Elko, Nevada.
GR Engineering's Managing Director, Geoff Jones, said that the acquisition of Hanlon was aligned with GR Engineering's growth strategy, and would increase the Company's existing footprint within the Americas.
"We are pleased to be acquiring the Hanlon business. Hanlon has a strong local brand with an excellent safety record and longstanding relationships with major mining clients. Hanlon has an experienced management team capable of taking advantage of the numerous growth opportunities that exist in the Americas.
Based on Hanlon's current workflow, identified growth prospects and GR Engineering's existing pipeline of work in the Americas, GR Engineering anticipates that the business will immediately contribute to GR Engineering's revenue and become EPS accretive for the Company in the financial year ending 30 June 2021. No material earnings impact is forecast for the current financial year.
The acquisition remains subject to the satisfaction of a number of conditions precedent customary for an agreement of this nature. It is anticipated that the acquisition will be completed by the end of February 2020.
Ends.
ASX Release
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:
Geoff Jones
Managing Director
+61 8 6272 6000
geoff.jones@gres.com.au
Omesh Motiwalla
CFO & Company Secretary
+61 8 6272 6000
omesh.motiwalla@gres.com.au
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