Construction and engineering company Forge Group Limited (ASX:FGE) has inked a deal to acquire Western Australian based engineering, procurement and construction company CTEC Pty Ltd for up to $38.6 million.
Forge says the acquisition will enable it to expand into the energy sector and is an important first step in its new growth strategy.
The deal is subject to a number of conditions, including the completion of due diligence.
Forge expects CTEC to contribute up to $250 million in annual revenue and EBITDA up to $20 million in the first full year of ownership.
In the 2011 financial year Forge Group increased its net profit by 32 per cent to $38.8 million.
