- Envirosuite (EVS) is set to purchase EMS Bruel & Kjaer Holdings for $85 million to bring together Australia’s two most successful environmental technology companies
- Envirosuite will purchase EMS on a cash-free, debt-free basis from its shareholder group
- The purchase will be funded by the $70 million placement and the company aims to raise a further $5.5 million through a share purchase plan
- The combined companies will create a world-class environmental technology platform
- Despite this big news, Enivrosuite has dropped 15.38 per cent on market close, trading at 22¢ apiece
Envirosuite (EVS) is set to purchase EMS Bruel & Kjaer Holdings for $85 million to bring together Australia’s two most successful environmental technology companies.
EMS is a leading global environmental technology group, with over 400 customers in 40 countries and approximately 200 staff.
It specialises in environmental noise and vibration monitoring and is the recognised market leader in addressing airport noise globally.
Envirosuite will purchase EMS on a cash-free, debt-free basis from its majority shareholder groups, Macquarie Corporate Holdings and Spectris Group Holdings.
The purchase will be funded by the $70 million placement and the company aims to raise a further $5.5 million through a share purchase plan.
“We believe that the transaction, if it proceeds to completion, is the most significant and formative transaction to be undertaken by EVS to date,” the company said.
“It brings forward Envirosuite’s medium-term aspirational plans into 2020 by delivering a new level of scale and commercial and geographic reach,” it added.
The combined companies will create a world-class environmental technology platform that will specialise in air, odour, wastewater, noise and vibration management.
Envirosuite sees significant opportunity across all respective industry sectors such as mining, smart cities, airports, waste and wastewater, construction and heavy industry sectors.
Based on management accounts, EMS is expected to record over $47 million in top-line revenue for the 2019 calendar year, including over $35 million in annuity or ongoing revenues.
EMS has deployments in over 220 airports providing noise and vibration monitoring solutions. The solution tracks the noise envelopes on planes and their impact on surrounding communities, at a granular level.
The deal is expected to complete at the end of February and is subject to shareholder approval.
Despite this big news, Enivrosuite has dropped 15.38 per cent on market close, trading at 22¢ apiece.