It will outlay $6 million plus an adjustment to pick up the contracts and net assets of WI Group, a subsidiary of US listed Pentair that provides water infrastructure solutions across Australia and New Zealand. It employs around 120 people and over the past three years the business has had an average annual turnover of approximately $60 million.
Monadelphous will make an initial cash payment of $6 million followed by a purchase price adjustment either upwards or downwards in accordance with the final net asset position at completion, which is expected by late February.
Monadelphous managing director Rob Velletri said the acquisition is part of the engineering company’s market growth strategy.
“The WI Group business will provide Monadelphous with strong capability in water design solutions, expand our geographical presence in the water market both in Australia and New Zealand, and provide significant opportunities in the growing infrastructure maintenance sector," he said.