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® 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®, 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® 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®
ComFlor® 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® 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® http://www.comflor.co.nz/technical-resources/installation-guide-videos/
For more information call: Tanya Katterns, S&T Communications Manager: 021 573 874