Based in Gladstone, Queensland, Eagle Engineering provides construction and maintenance repair services to the Queensland and New South Wales coal industry.
The company employs about 180 staff, and provides dragline and face shovel shutdown services to the coal industry in the Bowen Basin and Hunter Valley region.
Eagle Engineering forecasts its earnings before interest and taxes to be $4.25 million for the 2008 financial year.
According to RCR, the acquisition will significantly broaden the geographic and industry coverage of the company’s site construction and maintenance business unit.
It will also provide a foundation for RCR to expand its presence in the Queensland coal, alumina, chemical and refinery industries.
RCR plans to satisfy the acquisition with a cash payment of $15 million on settlement, and the balance to be paid in two annual $3 million payments, through the issue of RCR shares or cash, over a two-year earn-out period.
Settlement is scheduled to occur by the end of April.