LONDON (Alliance News) - Management Resource Solutions PLC on Monday said it has proposed a deal worth up to AUD13.6 million to acquire Australian bulk earthworks company Bachmann Plant Hire Pty Ltd.
The deal constitutes a reverse takeover under AIM rules and will be subject to securing shareholder approval at a meeting due to take place on January 28.
Bachmann is a Queensland-based civil construction services business, focused on bulk earthworks and plant hire operations. It made a pretax profit of AUD2.0 million on AUD21.7 million of revenue in the year to the end of June 2015.
"I am very pleased to announce the transformative and immediately earnings enhancing acquisition of Bachmann; which brings to the group a business with a long history of wet plant hire, long term customer relationships and which will add a division the company enhancing our service offering to existing customers and allow us to pursue new combined contracts further up the value chain," said Paul Morffew, Management Resource Solutions' chief executive.
Following the disclosure of the target for the reverse takeover, which had been flagged back in August last year, shares in Management Resource Solutions will start trading again Monday afternoon, having been suspended since the talks were first disclosed.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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