Cardno to buy engineering company TGM

Company News

by Rachael Jones

Professional infrastructure and environmental services consultancy, Cardno (ASX:CDD) has agreed to buy TGM, a Victorian based engineering services company.

TGM employs 130 people and specialises in the approval, design and completion of urban development, building and infrastructure projects.

On completion of the transaction, Cardno will pay up to $21.6 million in cash for TGM, with 20 per cent of the purchase price subject to achieving performance targets over the next two years.

The acquisition will be funded by a combination of cash resources and financing facilities.

TGM is expected to contribute approximately $23 million in revenue over the next twelve months.

Shares in Cardno (ASX:CDD) closed up 4.48 per cent $1.05 yesterday.

Rachael Jones

Finance News Network
Rachael comes to FNN after working for Fairfax Media covering international breaking news, including the global economy and politics. She joined FNN in February 2018. She has reported on Australia’s finance news for various organisations since 2000 and has also interviewed a number of key business players, including Bill Gates. Rachael has also worked across a number of countries, including the UK and the US.