ASX-listed energy services group Valmec is to be acquired by Altrad Australia Pty Ltd in a deal that values Valmec at A$52 million ($38 million).

The two have entered a binding Scheme Implementation Deed (SID) for the cash acquisition by Altrad for Valmec, with the scheme to be voted on at a shareholders meeting in mid-October 2021.

Altrad, a leader in industrial maintenance services headquartered in France, has identified Valmec as a significant value-adding opportunity for its client base and service offering.

Altrad Services Chief Executive Officer, Asia Pacific Region, Neil Sadler, said: “The acquisition of Valmec will mark another transformational milestone for our Asia-Pacific business and deliver a value-accretive step change in the scale and diversity for our company. Once the scheme is implemented, I look forward to working with my leadership team and the Valmec team to identify value-adding opportunities for our combined existing and prospective client bases.”

Among other work in the mining sector, Valmec has previously been contracted at Newmont’s Tanami project in the Northern Territory of Australia – infrastructure works at the Tanami Expansion 2 (TE2) project – and Mineral Resources Wodgina lithium project in Western Australia – delivering a gas pipeline.