Forge Group Limited
(ASX:FGE) has acquired US based Asset Management and Engineering business Taggart Global for $US43 million.
The Engineering and construction services company says its acquisition is expected to be earnings per share accretive in fiscal 2014.
Forge says the upfront acquisition price represents a multiple of less than three times Taggart’s forecast earnings for the next financial year.
In addition, Forge has entered into an earn-out arrangement for further payments of up to $US25 million if certain earnings milestones are met in the next three financial years.
Managing Director David Simpson says Taggart reaps over 70 per cent of its revenue from the US and places Forge well to benefit from a recovering US economy.
Forge Group generated a net profit of $33.9 million in the first half of the current financial year.
