WestStar Industrial says it has executed a share sale agreement to acquire 100% of Alltype Engineering Pty Ltd, effectively diversifying and expanding its capability to provide end-to-end project solutions.

The company has agreed to pay around A$5.9 million ($4.04 million) upfront, along with a deferred consideration subject to Alltype achieving its 2020 financial year targets, WestStar said.

Alltype will provide WestStar an integrated offering through workshop fabrication, site installation, construction and maintenance services to a broad range of industries, in both the private and public sectors, it said.

Established in 1985 and with a current workforce of around 120 personnel, Alltype is a leading provider of workshop fabrication, site installation, construction and maintenance services to the oil & gas, water, power generation, infrastructure, mining, resources, utility, petrochemical and defence industries, in both the private and public sectors across Australia.

Its customers include BHP and Rio Tinto, among others, and it has a 7,000 m² fully-equipped workshop for steel fabrication.

WestStar Group CEO, Robert Spadanuda, said the acquisition broadens WestStar’s horizons and will “significantly accelerate” it towards increased revenues and earnings.

“With the addition of Alltype, continued growth in SIMPEC and continued execution of our growth strategy, we look forward to continuing to build a strong, diversified, engineering company,” he said.