Valmec purchases APTS

Company News

by Kathy Skantzos

Energy services company Valmec (ASX:VMX) has entered into a business sale agreement to purchase the business and assets of engineering equipment company APTS.

The agreement includes the acquisition of its plant and equipment, a team of 55 staff, and approximately $5 million worth of long-term service contracts with oil and gas clients.

The client base includes Chevron, Woodside, Shell, Origin Energy and APA Group. The company has over $13 million of submitted tenders with current clients.

APTS’ average revenues over the past four years are approximately $20 million, and EBITDA is expected to return about 10 per cent in FY2018. .

The transaction is 100 per cent cash payable on completion, which will be funded from working capital and additional debt facilities.

Shares in Valmec (ASX:VMX) are trading 8 per cent higher to 27 cents.

Kathy Skantzos

Finance News Network
Kathy presents the Market Outlook and ASX company news. She joined FNN in September 2017. She has been in print and online journalism for over 9 years. She also worked in corporate communications.