SYDNEY, March 3 /CNW/ - Coffey International Limited (ASX:COF) today
announced it has acquired Canadian geotechnical firm Shaheen and Peaker
Limited and its subsidiary companies S&P Geo Engineering and Geo Canada for
approximately C$11.0 million in a mixture of C$8.8 million in cash and C$2.2
million in shares. Completion is contingent on certain conditions precedent
being satisfied. The acquisition price may increase by a further C$1.0 million
subject to future performance. The deal is immediately earnings per share
accretive for Coffey.
Coffey International Limited managing director Roger Olds said Shaheen
and Peaker are a quality geotechnical and environmental business, similar to
what Coffey was like in its earlier years as a private company.
"We jointly plan to build Coffey in Canada into a strong national
business as we have done in Australia, and are progressing in New Zealand and
the United Kingdom."
The Canadian market is similar to Australia with a strong resources base
and continuing investment in major transportation infrastructure and tourism.
"With 175 people, head office in Toronto and 7 branch offices in the
Ontario and Calgary regions, the business has good critical mass from which to
grow," Roger said.
Coffey Mining already provides substantial services to junior miners
listed on the Toronto Stock Exchange.
Matt Thomas, chief executive officer of Coffey Geotechnics, said this was
a unique opportunity to enter the Canadian market.
"The company's specialist skills are a tremendous fit with Coffey
Geotechnics. The staff are enthusiastic to grow the company and this creates
an ideal environment for Coffey to confidently enter this new market and build
on the initial partnership."
Shaheen Ahmad, president of Shaheen and Peaker, said: "The Coffey group
has grown enormously over the past eight years and has been successful
implementing their acquisition strategy. Coffey Geotechnics has an excellent
reputation as a specialist geotechnical firm worldwide. These two factors
grant Shaheen and Peaker the opportunity to grow technically and
internationally and we are excited by this opportunity."
Shaheen and Peaker's client base includes consulting engineers,
manufacturers, developers, along with private and government clients. Coffey
Geotechnics has more than 700 staff with offices in Australia, the United
Kingdom, and New Zealand.
Note to editors:
Roger Olds and Matt Thomas are available for interview.
To arrange please contact: Catherine Vallence at Mendleson Communication
on (+61) (3) 9827 0422, (+61) 400 212 245. email@example.com
For further information:
For further information: Catherine Vallence at Mendleson Communication
on (+61) (3) 9827 0422, (+61) 400 212 245, firstname.lastname@example.org