AUSTAL to Acquire ELECTRAWATCH INC.
AUSTAL (ASX: ASB) is pleased to announce that it has reached an agreement to buy ElectraWatch Inc., a United States based aluminum non-destructive testing technology company.
Key Highlights:
- Austal has agreed to acquire 100% of ElectraWatch Inc. for an all cash consideration of US$6.75 million, with no net debt.
- ElectraWatch has developed and deployed a unique portable system for the nondestructive testing of aluminum used in demanding environments, in this case predominantly for aluminum ships.
- The primary customer for the technology to date has been the United States Navy, both directly and through other major prime contractors and the system forms part of a monitoring environment for a variety of vessels.
- ElectraWatch is expected to have a CY18 revenue of US$2-3 million and is expected to continue to expand rapidly.
- The acquisition is expected to be earnings accretive in CY18 and beyond.
- Austal is the world’s largest aluminum shipbuilder with both defence and commercial operations. ElectraWatch will make a valuable contribution to the aluminum shipbuilding knowledge and experience base of the company and will grow the support and services business which is a key focus both in the USA and more broadly.
- ElectraWatch will continue to operate under its own brand inside the Service and Support business of Austal USA.
Commenting on the acquisition, Austal’s Chief Executive Officer, David Singleton said:
“The acquisition reflects Austal’s commitment to having the most advanced technology utilised in every element of our shipbuilding enterprise. Combining ElectraWatch’s patented technology with Austal’s advanced ship design, manufacturing and sustainment expertise will reinforce the company’s position as the industry leader in advanced aluminum shipbuilding.”
“In particular this acquisition will effectively support and increase our range of services for the shipbuilding and sustainment requirements of our key customer, the United States Navy” Mr Singleton said.
