Steel & Tube Holdings Limited announces its intention to acquire the business
of Composite Floor Decks Limited for an initial payment of $13.25 million.
Three earn out payments of $1m each will be payable if financial milestones
are met over the next two years.
Over the past 11 years, Composite Floor Decks Limited, which has a head
office in Auckland and operations in Christchurch, has established itself as
the market leader in the supply and installation of composite metal floor
decking within New Zealand. The company has been Steel & Tube''s distributor
and installer of ComFlor(R) since 2005.
S&T chief executive Dave Taylor says the acquisition is a perfect fit. "With
S&T having the license to manufacture and market ComFlor(R), the acquisition
means we enhance our supply chain capabilities, creating an end-to-end
process from manufacture through to installation."
"The business had FY15-16 revenue at $18m and $4.3m EBITDA. The forecast for
FY16-FY17 is a revenue of $22m and EBITDA of $5.5m."
All 50 employees are being offered employment with S&T. The transaction is
conditional on normal pre-completion matters and S&T expects to complete the
purchase no later than 31 October 2016.
ENDS
About S&T
S&T is New Zealand''s leading distributor of steel and stainless steel
products and services. The company has a national network of branches and
distribution centres, and is listed among the top companies on the New
Zealand Stock Exchange. With a comprehensive range of high-quality products
and services, Steel & Tube engages all sectors of the economy, across
infrastructure, commercial and residential construction, engineering, energy,
manufacturing, and the rural sector. Its product range includes the
Hurricane, Atlas and ComFlor(R) brands.
About Composite Floor Decks Limited
Composite Floor Decks Limited was formed to service the New Zealand market in
2005. Its parent company, Studwelders Composite Floor Decks Ltd, is the
leading supplier and installer of composite floor deck products to the UK
construction industry. Over the last 11 years, Composite Floor Decks Limited
has established itself as the market leader in the supply and installation of
composite floor decking within New Zealand.
About ComFlor(R)
ComFlor(R) is a new generation of composite steel floor decks developed by
Tata Steel that offer longer spans, reduced concrete usage and improved
construction stage efficiencies, including elimination of the need for
temporary propping. ComFlor(R) composite floor decks have emerged from an
extensive development process involving the Steel Construction Institute in
the UK and have been thoroughly tested at Imperial College in London to
ensure they are the strongest and most efficient steel decking profiles
available. See here for more about ComFlor(R)
http://www.comflor.co.nz/technical-resources/installation-guide-videos/
For more information call: Tanya Katterns, S&T Communications Manager: 021
573 874
End CA:00290881 For:STU Type:ASSET Time:2016-10-14 15:43:59