Monadelphous to acquire Perth concrete business

The news: Engineering company Monadelphous Group has agreed to buy Perth-based structural concrete business Melchor Contracting.

The numbers: Monadelphous will buy Melchor for an initial cash payment of $10 million, followed by a purchase price adjustment based on the target’s final working capital position at completion. Melchor employs around 300 people and generates revenue of approximately $100 million per annum.

The context: The Perth-based Monadelphous, which in August posted a small lift in full-year profit, said Melchor’s acquisition is aligned to its markets and growth strategy, and will broaden the company’s multidisciplinary construction offering to include civil capability. Melchor offers a full structural concrete package capability, including detailed earthworks, formwork, reinforcement fixing and concrete placement in the resources, energy and infrastructure sectors. The deal is expected to close in the first half of the financial year.