Macmahon moves on key infrastructure group

Mining services business Macmahon is taking over Decmil Group in a move to supercharge its growth in the civil infrastructure sector. The company has executed a scheme implementation deed to acquire 100 per cent of Decmil's share capital in a deal that values the Australian construction and engineering company at $127 million. Chief executive officer Michael Finnegan. "The acquisition of Decmil is a significant milestone in Macmahon delivering on its long-stated strategy to diversify its earnings and deliver a more resilient, scalable business enabling greater returns to shareholders," Macmahon managing director and chief executive officer Michael Finnegan said. "Decmil provides an established, well credentialed platform to allow Macmahon to better pursue the large opportunity pipeline of resource civil infrastructure and rehabilitation opportunities while diversifying earnings towards renewables and infrastructure, which are both expected to have an increased level of spending in the next decade." Macmahon describes the Decmil business as having established robust processes and operating systems, including holding the licenses to carry out a full range of road and bridge projects throughout Australia. It plans to leverage these to accelerate growth towards its long-term civil infrastructure revenue target of $1 billion per annum, or one third of group revenue. Macmahon intends to operate Decmil as a wholly owned subsidiary and to maintain the Decmil branding, with the existing Macmahon civil business to integrate into the subsidiary. Decmil will continue to be led by its current chief executive officer, Rod Heale. Related: Macmahon divests equipment on Bowen Basin project The acquisition adds about $6 billion in project work to Macmahon’s existing civil pipeline of $4 billion, and contributes an order book of about $450 million as at December 31, 2023. It gives Macmahon access to non-mining civil construction, including renewables and government infrastructure projects. The company sees the move as broadening its presence in Victoria and Queensland, with an opportunity to expand into including New South Wales and South Australia. Decmil's businesses include the 1392-bed Homeground worker accommodation village at Gladstone (pictured left). Macmahon's cash reserves, including $44 million proceeds from the recently announced Dawson mine equipment sales and existing debt facilities, will fully fund the Decmil transaction. The Decmil board has unanimously recommended that Decmil shareholders vote in favour of the deal, in the absence of a superior proposal and subject to an independent expert concluding that the schemes are in the best interests of Decmil shareholders. You may also like: https://industryqld.com.au/macmahon-wins-440m-work-extension-at-byerwen

Macmahon moves on key infrastructure group

Industry Queensland

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