ElectCables acquired by Australian mining services group DPSA
01 Nov 2008
The DPSA Group has acquired Australian electrical company, ElectCables, after a A$10million agreement was successfully concluded in late October.
For DPSA Group, a Brisbane-based maining services group of companies, the ElectCables acquisition is the the second successful deal to be concluded in the past four months.
DPSA Group CEO Neill Clur said the ElectCables acquisition was financed as part of the group's A$32 million funding agreement with NAB and Investec Bank (Australia) Ltd.
He said the new company will add considerable strength to DPSA's electrical supply capability.
"The acquisition has significantly improved DPSA's representation in Western Australia and nationally. As part of the DPSA Group, ElectCables will now be able to take even greater advantage of the still strong conditions which prevail thanks to the strength of the mining industry," he said.
The ElectCables deal follows the successful acquisition of a large Queensland engineering company, MEM Rockhampton, in June 2008. MEM, which provides mechanical and fabrication services to leading mining and earth moving companies in the Central Queensland region, has performed strongly since the DPSA takeover.
Neill Clur said: "We have an exciting growth strategy for 2009 which has not been dampened by the current international financial uncertainty. When the inevitable market recovery occurs, DPSA will be very well placed to proceed with a listing on the Australian Stock Exchange," he said.
Investec's Tim Wilson said DPSA presented the perfect opportunity for Investec's style of funding. "We have every confidence we are backing a proven entrepreneur in DPSA CEO Neill Clur with funding that is designed to accelerate DPSA's growth plans at a pace beyond what would otherwise be possible with straight bank debt."
NAB's Eric Mak said: "The ElectCables acquisition is another milestone for the DPSA Group that NAB is proud to have been involved in. The funding model that we have developed together with Investec assists the Group's organic growth and enables them to make strategic acquisitions.
"We look forward to continuing our partnership with the Group towards a successful listing and beyond," said Mr Mak.
"Investec and NAB have been outstanding investment partners. The fact that they backed this deal in this difficult financial climate demonstrates their faith in our company as we continue to grow strongly," said Mr Clur.