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.