Infrastructure services group, Cardno has acquired BEC Engineering (BEC), a 100 person electrical engineering firm based in Perth with additional offices in Brisbane and Tanzania.
BEC provides electrical engineering services primarily to the resources sector ranging from feasibility studies through project design, to construction, commissioning and operations.
BEC has capability across all aspects of electrical design, instrumentation, power systems, power generation/transmission and distribution, control and communications systems with an expert team of engineers, technicians, programmers, draftspersons and site support staff.
The acquisition is expected to contribute approximately $35 million in revenue and $9 million in EBIT in FY12. Cardno will pay $45 million to acquire BEC including an earn-out of up to $1 million.
The Managing Director of Cardno, Andrew Buckley said: “BEC brings to Cardno specialised electrical engineering expertise in the mining and resources sector, an area into which we have been planning to expand for some time. BEC specialist services will also provide opportunities for further growth through cross selling with our other businesses.
“BEC’s focus on the resources sector gives Cardno greater exposure to a market that has significant growth potential over the next few years,” he added.
In its 15-year history, BEC has worked with major clients who include BHP Billiton, Rio Tinto, Mineral Deposits, Newcrest, Fortescue Metals Group, Barrick Gold, Outotec and Regis.
BEC has carried out project work throughout Australia, Asia, Africa, Europe and North & South America primarily in mineral processing plants including gold, copper and iron ore.
Geoff Bailey, Managing Director and founder of BEC, said the acquisition by Cardno will enable BEC to take more advantage of the major opportunities which are emerging as a result of the significant investment in resource development projects.