Industrial services company WestStar Industrial Limited (ASX:WSI) has wrapped up the acquisition of the business and assets of Watmarine Engineering (WATMAR).
WestStar acquired WATMAR through a newly established wholly-owned subsidiary, Watmar Engineering Pty Ltd. WATMAR is a fluid system engineering specialist predominantly operating within defence, industrial and marine industries
WATMAR Overview
WATMAR has a sound reputation in the Australian marine and defence sectors as a Fluid System Engineering Specialist. WATMAR operates from Perth, Darwin and Sydney, providing four main business lines: Fluid Systems and Equipment, Engineering Services, Engineering Contracting and Asset Management Services.
WATMAR’s strong and long-standing client base consists principally of government and large-scale enterprises in both the public and private sectors, including Australian Government Department of Defence, BAE Systems, Serco Group, Babcock Australasia, Luerssen Australia and Woodside Energy.
Acquisition Key Considerations
- WestStar has today paid the upfront cash consideration for the WATMAR acquisition from existing cash reserves
- Purchase price adjustment mechanisms that are customary to a transaction of this nature are in place
- WATMAR is a strategic acquisition allowing WestStar immediate entry into the high barrier-to-entry Defence sector with additional significant upside and potential for growth through complimentary offerings to WestStar’s existing businesses
- The acquisition is expected to be immediately earnings per share accretive (not including the expected synergy benefits).
