International infrastructure and environmental services group, Cardno Limited (ASX: CDD) today announced that it has agreed to acquire Caminosca S.A. , a 400 person engineering consulting firm headquartered in Quito, Ecuador. The acquisition is subject to regulatory approvals in Ecuador which are expected to be finalised in January 2013.
The acquisition is expected to contribute approximately US$28 million in revenue and US$3.5 million in EBIT over the next twelve months. The acquisition will be earnings per share accretive in FY2013 and has an effective date of 1 December 2012.
Caminosca has been operating since 1976 and is one of the largest engineering consulting companies in Ecuador. The acquisition further strengthens Cardno’s presence in South America where Cardno’s businesses have operated since 1995.
Caminosca provides specialist engineering consulting services in the hydropower, mining, oil and gas, roads, water supply and sewerage, urban development, airports and stormwater sectors. Caminosca is involved in major projects including the 500 MW- Sopladora hydropower project and the development of oil and gas production and transportation facilities in the Amazon Region. The combination of Caminosca’s broad engineering skills with Cardno’s existing environmental capability business in Ecuador creates a strong platform to deliver a complementary suite of services to local and international clients in the region.
Cardno Managing Director, Mr Andrew Buckley, said that the acquisition significantly expands Cardno’s South American portfolio increasing our number of employees in the region to around 600. “South America plays an important role in Cardno’s diversification strategy and there are many exciting opportunities in the region which is forecast to deliver strong economic growth. We believe Cardno’s world-leading expertise with physical and social infrastructure is complementary with Caminosca’s service offerings. The acquisition offers strong potential to cross-sell Caminosca’s capabilities to Cardno’s existing South American clients and to offer Caminosca’s clients the broader range of Cardno’s services” remarked Mr Buckley.
Clients of Caminosca include major South American mining, infrastructure, utility and energy providers such as Kinross Gold Corporation, Andes Petroleum Ecuador Ltd., Norr Limited Architects and Engineers, Metro Madrid and Panavial S.A., and many government institutions such as the Electric Corporation of Ecuador, Ministry of Transport & Public Works, and National Oil Companies Petroecuador and Petroamazonas.
Eduardo Jácome, President of Caminosca remarked, “We are very pleased to join Cardno. Cardno’s focus on client service delivery as an international consulting firm aligns well with Caminosca’s philosophy of adopting the highest standards in dealing with its clients. Each company understands the South American market, and our merger will provide a balance of high-end expertise with local community engagement to deliver the right solutions for our clients.”
In line with Cardno’s strategy, Caminosca’s key management will become shareholders in Cardno and remain active in the company. Caminosca will be renamed Cardno Caminosca.
The acquisition is expected to be completed in late January 2013 and will be funded by a mix of cash and shares. Around 773,000 shares will be issued at a price of $6.13324. The cash component will be funded from available cash reserves.
For further information please contact:
Mr. Andrew Buckley
Ph: +61 (0)7 3369 9822
Mobile: +61 (0)412 059 526
Mr. Jeff Forbes
Chief Financial Officer
Ph: +61 (0)7 3369 9822
Mobile: +61 (0)408 756 790
Cardno is an ASX 200 listed professional infrastructure and environmental services company, with specialist expertise in the development and improvement of physical and social infrastructure for communities around the world. Cardno’s team includes leading professionals who plan, design, manage and deliver sustainable projects and community programs. Cardno is an international company, listed on the Australian Securities Exchange [ASX: CDD]. www.cardno.com