Monadelphous to acquire Ellavale

WESTERN Australia-based engineering group Monadelphous has set the ball rolling to acquire Hunter Valley-based coal services business Ellavale Engineering following the signing of an agreement by the two companies.

Staff Reporter

Monadelphous will acquire the business and associated property of Ellavale Engineering for a total consideration of $7.25 million, with $2.75 million to be satisfied by the issue of Monadelphous shares.

Ellavale Engineering, a dragline and shovel maintenance provider, achieved a turnover in excess of $16 million for the year ending June 2006.

The company services the New South Wales coal industry and has a client base that includes major resource companies Rio Tinto, Xstrata and Anglo Coal.

Monadelphous managing director Rob Velletri said Ellavale Engineering would be integrated into the company’s maintenance and industrial services division, enhancing its recurring services revenue base and growing its presence in the eastern Australian resources sector.

“The principals of Ellavale, Rob Seath and Steve Honey, and their team bring a wealth of experience in the maintenance of specialist coal mining equipment such as draglines and shovels. This expertise will support Monadelphous’ expansion in the central Queensland coal fields, leveraging off our recently opened Mackay base,” he said.

Seath and Honey will remain with Ellavale Engineering in senior management roles.

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