GR Engineering Services Ltd has announced that it has entered into an agreement to acquire Mipac Holdings Pty Ltd, a leading global provider of control systems engineering, automation and technology services. The deal diversifies GR Engineering’s offering into the delivery of standalone process control design, control systems technology supply and automation solutions.
It also enhances GR Engineering’s control system design capabilities and expands its service offering from both its broader mineral processing design and construction business and Upstream Production Solutions Pty Ltd, the company’s oil, gas, energy and water business. Mipac is forecasting FY21 revenue of approximately A$25 million with similar revenue anticipated for FY22, supported by Mipac’s current order book and pipeline.
The purchase price is up to A$21.4 million, with A$14.5 million payable on completion by a combination of existing cash plus scrip, and the balance deferred subject to meeting EBITDA targets. Mipac’s current management team have agreed to continue in their roles post–completion.
Mipac in its company outline states: “We have a world-leading reputation in metal and minerals process control and automation, with a long history of solving operational problems, minimising risk and driving productivity. We create opportunities for transformation through robust instrumentation and electrical infrastructure, process automation and digitisation, system optimisation, consistent and reliable data, and development of engaged, safe and empowered workforces.”
GR Engineering stated: “Process controls have become increasingly relied upon as a platform to extract efficiencies and improve safety outcomes in processing operations through the adoption of technology and software solutions. Advances in control system design and product technologies and their adoption in operations are being mandated across the industry by leading industry participants to support the safe and optimised performance of assets. The acquisition of Mipac provides GR Engineering with an opportunity to offer standalone control systems engineering, automation and technology solutions to its clients through the supply of advanced control systems design services, product supply, installation and procurement works. GR Engineering self performs design, procurement and installation works for control systems within its mineral processing design and construction operations through its in–house process control systems engineering team. It is anticipated that Mipac will supplement and enhance GR Engineering’s offering in this area.”
Completion of the share sale agreement is conditional upon the satisfaction of conditions precedent, including in respect of obtaining third party consents, retaining the services of key personnel and other conditions customary for an agreement of this nature. It is anticipated that completion will occur prior to 31 May 2021.
