Austin Engineering Ltd (ASX:ANG)
is gearing up to expand into a new area of the mining services market, announcing it has bought the COR Cooling group for $19.5 million.
The engineering company says the purchase will be funded from existing debt facilities and cash reserves and immediately earning per share accretive.
COR Cooling group specialises in the supply of radiators and products in mining trucks and other industries, with forecast revenue of between $18 million to $20 million per annum.
In the year to 30 June 2010, Austin Engineering reported a net profit of $19.26 million.