Mining and rail products maker Bradken Ltd
(ASX:BKN) has acquired Almac Machine Works in Canada for $51 million.
The company says it expects to fund the transaction through a fully underwritten institutional placement of $50 million.
Bradken says it expects the acquisition to be around 3% earnings per share accretive in the first full financial year following completion of the transaction and share placement.
Completion of the acquisition is expected by early July 2010 and is conditional on receiving customary licences and approvals.
Bradken also upgraded its earnings guidance for the year, saying it now expects earnings before interest, tax, depreciation and amortization to be in line with or slightly below its fiscal 09 result.
The company says it is comfortable with the outlook for its core business, with signs of recovery in the US based Engineered Products division, and says it expects Almac to continue to grow organically.
Following the acquisition and equity raising, Bradken will continue to be well placed to capitalize on future growth opportunities.
Bradken booked a $64.27 million profit for financial year 2009.
