Vysarn Limited has entered into a binding Share Sale Agreement (SSA) for the acquisition of Project Engineering (WA) Pty Ltd, a hydraulic engineering business that primarily services the resource sector in Western Australia.
Under the SSA, the company will acquire 100% of the issued shares in ProEng for a consideration of A$2.6 million ($1.8 million) in cash.
ProEng will become a wholly owned subsidiary of Vysarn upon completion of the acquisition.
Vysarn says it has identified organic growth opportunities for ProEng as well as material integration opportunities with Pentium Test Pumping and Pentium Water.
“Management intends to rapidly integrate ProEng into the Vysarn Group of companies and then pursue these growth opportunities, initially via the planned expansions of Pentium Test Pumping’s service offering into injection testing and Pentium Water’s expansion into managed aquifer recharge (MAR) consulting,” the company said.
ProEng’s current core competency is the provision of MAR systems to Tier One iron ore clients in the Pilbara of Western Australia.
Over time ProEng has completed significant research and development of aquifer reinjection systems, which has culminated in unique registered and patented MAR equipment and valve technology, Vysarn says. As such, the ProEng MAR systems provide production-critical infrastructure for mining operations to solve ongoing, high volume mine dewatering and environmental issues faced by Tier One iron clients.
In addition, there is growing interest in MAR systems and their ability to assist in processes aimed at water harvesting and water banking to future proof water supplies from both regulated and non-regulated water abstraction sources, the company added.