Engineering and industrial services group WestStar Industrial (ASX: WSI) is aiming to grow turnover to $100 million a year following shareholders voting to approve its purchase of Alltype Engineering for $6 million in WestStar shares.
The combined group has revenues of around $60 million providing engineering, construction and mining services to the resources, energy and infrastructure sectors
WestStar Group CEO Robert Spadanuda said: “Alltype Engineering is an established and well-respected name in the industry.
“We are pleased to add their capabilities to the WestStar Group and welcome their team as we look to target annual revenues of $100 million.
“With Alltype, growth in SIMPEC and execution of our growth strategy, we look forward to building a strong, diversified, engineering company.”
SIMPEC is a WestStar subsidiary focusing on structural, instrumentation, mechanical, piping, electrical and civil engineering.
Spadanuda said Alltype’s 6,000 square metre fabrication shop (pictured) at Naval Base, Western Australia would add significant fabrication capacity to the group.
“This is a highly strategic and compelling acquisition for WestStar.
“WestStar is purchasing a substantial increase in revenues and earnings base, along with cash and material fixed assets with no cash consideration.”
In its latest financial year Alltype earned a net profit after tax of $1.7 million on turnover of $29.8 million.
Picture: Alltype Engineering
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