AUSTRALIA: Malaysian engineering group Gamuda has signed a binding agreement to acquire Downer EDI’s Australian Transport Projects division, continuing its expansion into the Australian market.
Local subsidiary Gamuda Australia has already expanded from around 50 employees to almost 400 in less than a year, and the company last year won three major contracts totalling more than A$3·3bn, including the Sydney Metro West Western Tunnelling Package.
With an enterprise value of A$212m, the deal will see a further 1 000 people transferring to Gamuda, along with a forecast workbank worth approximately A$2bn. Subject to regulatory approval, the transaction is expected to be concluded by June 30. The division will be rebranded as DT Infrastructure Pty Ltd and will operate as a standalone business within the Gamuda group.
‘This acquisition is a strategic move for Gamuda in line with its regional growth plan’, explained Group Managing Director Lin Yun Ling on February 22. ‘The group is targeting to achieve a sustainable A$3bn of annual revenue from the enlarged Australia business within the next three years.
‘We believe there are very substantial growth opportunities in Australia, and this move enables us to expand not only the volume of projects we do but also the different aspects of transport infrastructure work we will be undertaking — from large tunnelling jobs to medium-sized projects, rail, track construction and maintenance, line electrification, delivery of depots and stabling yards, and construction of railway stations.’
‘We are focused on growing a business with a fresh approach towards collaborative teamwork and developing our people’, added Gamuda Australia Executive Director Ewan Yee. ‘Adding local capability in rail and transport projects helps unlock our international experience and innovation in Australia as a turnkey infrastructure provider.’
