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Civmec completes acquisition of shipbuilder Forgacs for A$21m
CIVMEC on Tuesday said it has completed its acquisition of Australia's largest privately-owned engineering and shipbuilding company, Forgacs, for A$20.75 million (S$20.9 million).
The construction and engineering services provider to the oil and gas industry has also decided that the acquisition will include the Forgacs name, the shipyard facilities, and the assets located at Tomago, New South Wales.
The purpose-built shipyard at Tomago is situated on the Hunter River, just 14 kilometres from the Port of Newcastle. The 22.7 hectare site includes 535 metres of river frontage with two ship basins.
Additional assets, being plant and equipment at the Hexham and Gladstone operations which had been included in the heads of agreement between the two companies, were ultimately not purchased, it said.
Civmec will develop the Tomago site to operate as a multi-disciplinary facility which will in future replicate its flagship operations at Henderson, Western Australia.
Civmec CEO Pat Tallon said: "This acquisition gives us a strong presence on the east coast of Australia, enabling us to establish a more substantial east coast office to provide national and regional clients with a range of services in line with those we currently provide on the west coast of Australia. It also ensures that we are well-positioned immediately to capitalise on the significant ongoing infrastructure expenditure on the east coast.
"Our initial focus will be on steel fabrication and pre-cast concrete manufacture and over time we intend to combine the credibility of both the Tomago purpose-built shipbuilding facilities and Civmec's heavy engineering expertise to further strengthen our defence service offering."
The acquisition is not expected to have any material impact on the group's financial performance for the year ending June 30, 2016.