Service Stream has announced that it has entered into a binding agreement to acquire Comdain Infrastructure for $161.7 million.
Comdain Infrastructure is a major provider of integrated asset lifecycle services to Australia’s utility asset owners and operators. It’s a provider of engineering, design and construction, as well as operations and management of gas and water infrastructure services.
As part of the acquisition, Comdain Infrastructure’s Chairman, Tom Coen, has been invited to join the Service Stream Board as Non-Executive Director.
Peter Coen will remain in his role as head of Comdain Infrastructure’s operations to support ongoing growth, success and integration of the business, with Jim Gaha to remain in place as Chief Operations Officer to support the transaction.
The acquisition is consistent with Service Stream’s strategy of diversifying and increasing annuity-style revenues, leading to a relatively even distribution of group revenues from the utility and telecommunications sectors.
Comdain’s Infrastructure operates across well-known utility markets and shares a familiar client base with Service Stream. This presents opportunities for expansion across additional areas, growing future service offerings and broadening the scope of works to cover other utility networks.
An integration plan has been designed to manage the transition and support the continued growth of Comdain Infrastructure, leveraging the learnings from the recent TechSafe integration process.
The acquisition has an expected completion date of either 2 January 2019, or 1 February 2019, upon satisfaction of conditions. Transaction costs of up to $2 million are expected to be incurred by Service Stream.
