Leading mining and civil contractor NRW Holdings (ASX: NWH) has continued its national expansion push with the acquisition of the BGC Contracting business, in a deal worth $310 million. NRW placed its shares, at $2.83, in a trading halt this morning while it completed a fully underwritten $120 million placement to fund the deal. NRW will follow up with a share purchase plan to raise a further up to $10 million. The deal, long talked about, will see NRW pay the Buckeridge family $116.4 million cash as well as absorb $193.6 million of debt related to asset finance, including for a mining fleet. NRW chief executive Jules Pemberton described the BGCC deal as “strongly aligned with our objective to pursue opportunities to further diversify our revenues and enhance shareholder returns”. The addition of BGCC will boost NRW’s by about $1.5 billion to about $4 billion. NRW expects the deal to be highly earnings-per-share accretive, to the tune of more than $25 per cent once $15 million of synergies are realised.
NRW Holdings Limited (NRW) (ASX:NWH) is pleased to announce that it has executed an agreement to acquire 100% of BGC Contracting with an assumed economic effective date of 31 August 2019 (Acquisition). The Acquisition values the equity of BGC Contracting at $116.4M (payable by NRW in cash at completion).
As part of the Acquisition NRW will also assume $193.6M of debt related to asset finance. The Acquisition implies an enterprise value of $310M (EV).
NRW is undertaking a fully underwritten placement to raise $120M (before costs) (Placement). Separately, NRW also intends to undertake a share purchase plan (SPP) capped at $10M.