Join our daily newsletter At The Bell to receive exclusive market insights
- WestStar Industrial has announced a share sale agreement to buy Alltype Engineering
- The acquisition expands WestStar’s ability to offer project solutions through workshop fabrication, site installation and construction and maintenance services to a broad range of industries
- Alltype is considered a leading provider of services in a range of industries. Over the past 13 years, it generated roughly $250 million in revenue
- This acquisition deal will broaden WestStar’s horizons, de-risk its portfolio and expand its capabilities
- WestStar is up 4 per cent today, with shares trading for 2.6 cents each
WestStar Industrial has executed a share sale agreement to acquire 100 per cent of Alltype Engineering.
This acquisition diversifies and expands WestStar’s ability to provide end-to-end project solutions through workshop fabrication, site installation and construction and maintenance services to a broad range of industries.
“Alltype is a well-established and respected name in the industry and WestStar looks forward to pursuing the strategic integration opportunities, along with greater diversity in disciplines and proven client relationships that Alltype provides,” WestStar CEO Robert Spadanuda said.
Alltype provides a number of services to the oil and gas, water, power generation, infrastructure, mining and resource, utility, petrochemical and the defence industries.
In the 2019 financial year, Alltype delivered revenue of $29.8 million and over the past 13 years, approximately $250 million.
CEO Robert believes this will broaden WestStar’s horizons and significantly increase revenues and earnings.
The acquisition of Alltype will expand the company’s steel fabrication capability from its 7000 square metres fully equipped workshop.
“We are excited by the opportunity to join WestStar and see it as a valuable opportunity for each of Alltype and WestStar to continue their growth with there being significant opportunities from a combination of the Alltype and WestStar businesses,” Alltype Managing Director Kelvin Andrijich said.
Under the acquisition, Alltype is expected to hold approximately $4 million of plant and equipment.
Additionally, Kelvin and Alltype’s Chief Operating Officer, Colin Heitman, will join WestStar to continue managing the Alltype business.
WestStar is up 4 per cent today, with shares trading for 2.6 cents each at 12:18 pm AEDT.
