Laserbond enters WA market through Gateway acquisition

Surface engineering technologies company Laserbond has entered the Western Australian engineering market with the purchase of 40 percent of Gateway Parts & Equipment for $10 million.

Laserbond has the right to acquire further shares after three years to obtain 51 percent of the company, with any subsequent purchase necessitating the approval of Gateway shareholders.

The method for payment for any additional shares may be cash or scrip.

Laserbond has developed a range of surface treatment technologies including a laser cladding system that can metallurgically bond metals to heavy machinery components, extending their life.

Meanwhile, Gateway supplies the mining industry with new and refurbished hydraulic cylinders, powertrain components, undercarriage parts and hydraulic pump and valves.

Laserbond told investors that the purchase agreement for Gateweay was executed this week and was subject only to immaterial conditions.

“The consideration payable is a 4.5 times multiple of Gateway’s FY23 EBITDA of $5.6 million.

“This equates to a purchase price for the 40 percent share of Gateway of $10 million…paid in a combination of ($4.80 million) in cash and (Laserbond) shares.”

Laserbond will appoint its non-executive director Dagmar Parsons to the board of Gateway.

The WA mining engineering market has recovered in recent years from its Covid-19 lows, with companies reporting increased greenfields work and maintenance.

Further reading:
Search for CRC industry partners – Laserbond case study

Picture: Laserbond/apprentices at work at Laserbond’s Smeaton Grange, NSW facility