In line with Civmec’s strategic growth plans, the Company has agreed to enter into a due diligence phase for the acquisition of certain assets and the Forgacs name.
Forgacs is Australia’s largest privately-owned engineering and shipbuilding company, engaged in major project engineering, construction and maintenance for both defence and commercial markets.
The proposed acquisition includes a purpose-built shipbuilding site. Forgacs Shipyard – Tomago is located 14 kilometres from the Port of Newcastle, NSW on the Hunter River. The 17 hectare site has 535 metres of river frontage with two ship basins. The acquisition also includes plant and equipment currently located at the Forgacs Hexham heavy engineering workshop and at the Forgacs Gladstone heavy engineering workshop.
Forgacs’ ‘Products’ business, Forgacs-Broens Pty Limited, does not form part of the sale and will continue to operate from its Ingleburn, NSW and Elizabeth, SA facilities.
Civmec believes that the considerable opportunities in the infrastructure sectors on the east coast as well as the long-term outlook within the defence, oil & gas and metals & minerals sectors justifies the investment.
Civmec CEO Pat Tallon said, “This is a very exciting opportunity for our company to extend our multi-disciplinary operations to the east coast of Australia and to gain a long established foothold in the defence shipbuilding industry. It will also give us the opportunity to acquire in-house submarine building and technical expertise. We will be well positioned to capitalise on the significant infrastructure expenditure planned for the east coast and our increased capacity will allow Civmec to deepen our relationship with existing blue chip clients nationally, as well as bringing on board new regional clients.”
Peter Burgess, Chairman of the Forgacs Group commented, “Forgacs has more than 50 years’ experience in the heavy engineering and projects business and entered the naval ship repair business in 1990. It has grown its naval involvement progressively, undertaking major naval programs including the conversion of HMAS Manoora and HMAS Kanimbla into Amphibious Helicopter support ships; hull modules for the ANZAC frigates and most recently the AWD program. The Tomago shipyard has built some of Australia’s iconic ships such as ice breaker ‘Aurora Australis’, HMAS Tobruk and hull sections of Collins Class submarines. Our shipyard is ideally positioned for Civmec’s future plans.”
Subject to satisfactory due diligence, necessary stakeholder approval and the finalisation of the sale and purchase agreement, the Company expects to complete the transaction in December 2015.