The acquisition has been funded from available cash without needing to draw on Coffey International Limited’s debt facility. The acquisition will be immediately earnings per share (EPS) accretive.
The Testrite business has been in operation since 1970 and has a turnover in excess of $2 million. When fully integrated into Coffey premises it will deliver strong earnings contribution through synergy benefits.
Testrite will merge with subsidiary business Coffey Information, strengthening services in concrete and soils testing. Its 26 staff will help address demand from major projects for trained technicians with this expertise and ensure continuing relationships with Testrite customers.
Testrite has a NATA registered laboratory and operates a quality system in accordance with Australian Standard AS 17025.
Rebranding to Coffey Information will begin immediately.
Coffey managing director Roger Olds said that the addition of Testrite supplemented Coffey’s service offering to the infrastructure sector and, in particular, Coffey Information’s ability to provide high-quality scientific testing solutions to construction clients.
“Testrite is a niche business with a reputation for excellent technical knowledge and customer service. The business has provided testing services for many high profile infrastructure projects such as the Sydney Harbour Tunnel, the Sydney Airport parallel runway, the M5 East Tunnel and many high rise buildings in Sydney.
“This acquisition is another step for Coffey Information to firmly establish its position as the number one testing business in the Australian and New Zealand markets.”
Coffey Information is Australia’s leading provider of scientific testing solutions to the construction industry. Major projects currently being undertaken include the Northern Hume Alliance, Coopernook to Herons Creek Pacific Highway Upgrade and Ballina bypass. The business has around 400 staff and operates in Australia, New Zealand and Brazil.
Coffey is a global consulting engineering, project management and international development firm with a range of multi-specialist businesses operating in social and physical infrastructure. The company drew on its 50 year history of providing specialist soil, rock and construction materials testing as part of its geotechnical engineering consultancy to launch an independent business, Coffey Information, in July last year.
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Media contacts:
Diana Krause, Communications Manager, Coffey International Limited
P: (+61) (3) 9473 1300; M: (+61) 420 959 942; E: diana_krause@coffey.com
Heather Potter at Mendleson Communication
P: (+61) (3) 9827 0422; M: (+ 61) 431 856 598; E: heather@mendleson.com.au
