MACA to go east with SSE purchase from Podbury


WA firm aims to get expanded footprint and long-term contracts

MACA to go east with SSE purchase from Podbury
SSE deal will provide asset management and road maintenance work to MACA.

 

Western Australian civil and mining contractor MACA has agreed to buy Podbury Group firm Services South East (SSE) in a two-step process.

The deal, worth about $1.8 million if finalised, will see MACA buy 75 per cent of SSE for $1.35 million, with an option for the remainder.

For that, MACA, which runs a fleet of prime movers, rigid tippers and highway watertrucks, will gain a presence in south-eastern states and experience in New Zealand.

MACA says SSE offers "alliance-style" asset management and road maintenance contracts for VicRoads and local government and minor civil works projects.

The business holds a National R2/B1 road and bridge pre-qualification and an M2 maintenance pre-qualification with VicRoads for bridges, pavements and roadsides and has an annual turnover of $25 million.

"The acquisition enables MACA to establish a baseline of recurring asset management and road maintenance work to underpin the civil business going forward," MACA CEO Chris Tuckwell says on the purchase’s rationale.

"The acquisition also provides an immediate entry into the east coast civil market where Australian Road Agencies are progressively outsourcing road asset maintenance.

"SSE has three long term maintenance contracts and will add approximately $60 million of recurring civil maintenance work to MACA’s work in hand."

This is the second purchase in three months for MACA, which has a link to McAleese through the Atlas Iron debt solution.

It bought smaller rival Alliance Contracting in January for $5 million including debt facilities.

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