Skilled Group is set to pay more than $75 million for Broadsword Marine Contractors
June 17, 2013
Australian Labour hire and workforce services company, Skilled Group will buy Broadsword Marine Contractors for $75.5 million, according to a statement to the Australian Securities Exchange (ASX) today.
Skilled
plans to expand its capability in the oil and gas services sector, with the purchase.
Broadsword is a Northern Territory-based marine services provider. The company provides inshore and offshore shallow water services with a fleet of small to medium vessels
in the Northern Territory and Western Australia.
“This is a carefully targeted and financially compelling acquisition that extends our capability, geographical reach and exposure to oil and gas, while enabling an extension of service to our clients,” Skilled Group CEO Mick McMahon says.
According to Skilled, the purchase complements existing manning and marine logistics services provided by the group’s growing offshore services business.
Broadsword has a blue chip client base and reportedly has high demand for its services, benefiting from opportunities in the oil and gas sector, including floating LNG projects.
Broadsword’s earnings before interest, taxes, depreciation and amortization (EBITDA) for the 2014 financial year has been forecast to reach up to $17 million.
The purchase is expected to build Skilled’s operational scale and geographic reach, market position and service capability.
Skilled plans to provide oil and gas expertise safety systems, client reach, and back office systems.
The transaction is expected to be completed in July 2013.