Engineering and industrial services group WestStar Industrial (ASX: WSI) has extended its manufacturing capabilities with the purchase of Alltype Engineering in an all-scrip deal.
No cash is changing hands.
Alltype operates a 7,000 square metre fabrication shop (pictured) employing 120 at Naval Base, Western Australia and services customers in the Oil & Gas, Water, Power Generation, Infrastructure, Mining, Resources, Utility, Petrochemical and Defence industries.
The purchase diversifies and expands WestStar’s capability to provide end to end project solutions through workshop fabrication, site installation, construction and maintenance services, especially through Alltype’s oil and gas customers.
WestStar Group CEO Robert Spadanuda said: “Alltype is a well-established and respected name in the industry and WestStar looks forward to pursuing the strategic integration opportunities, along with a greater diversity in disciplines and proven client relationships that Alltype provides.
“This Acquisition broadens WestStar’s horizons and will significantly accelerate it towards increased revenues and earnings.”
The two companies have a combined annual revenue of $60 million, EBITDA of around $3 million and $12 million cash on hand.
Alltype offers WestStar opportunities for vertical integration, diversification, recurring revenues and management strength.
Alltype’s executive management team, including part owners Kelvin Andrijich (Managing Director) and Colin Heitman (Chief Operating Officer) will join WestStar to continue to manage the Alltype business.
“With the addition of Alltype… and continued execution of our growth strategy, we look forward to continuing to build a strong, diversified, engineering company.”
Picture: Alltype Engineering
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