Boom buys coal mining specialist

CRANE hire group Boom Logistics has agreed to purchase Mackay-based lifting company Camilleri Industries Australia for $A27.5 million.
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Boom Logistics

James Bowen

Camilleri provides lifting technology to customers predominantly involved in coal mining and related activities in Queensland’s Mackay and Bowen Basin regions.

The business has a fleet of 50 cranes and 90 forklifts and is expected to generate revenue of $A18.9 million in the 2006 financial year.

Boom already operates 54 cranes in the Bowen Basin.

Managing director Rod Harmon said the acquisition provides a strong strategic fit for the company.

“Importantly, it provides ready-made access to assets and labour to capture an increased market share,” Harmon said.

The deal is expected to be settled by March 31, 2006.

Boom has also announced it will undertake an equity raising of $A70 million through an institutional placement of new shares. The funds produced will be used to partly fund the Camilleri acquisition and to fund organic growth and working capital.

Boom expects it will also provide the flexibility and financial capacity to pursue further strategic acquisitions.

The company recorded a net profit of $A15.7 million for the first half of the 2005-06 financial year, which was up 134% from the corresponding period of 2004-05.

ConstructionIndustryNews.net

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