Downer nabs Tenix for $300 m

 Downer EDI
will buy privately owned Tenix Holdings Australia, signing an agreement worth
$300 million which will be completed at the end of the month.

In a
statement to the ASX, Downer said it would acquire Tenix on a cash and
debt-free basis, claiming it as a perfect strategic match which would expand capabilities at a fair price.

“There is little overlap between the two companies and
Tenix will be the foundation for a new core utilities business for Downer,” said Grant Fenn, CEO of Downer.

There was strong growth potential with Tenix (owned by the
Salteri family), said Fenn, with Tenix a leader in electricity, gas and water
markets in Australia and New Zealand.

The
acquisition would form the core of a new utilities business for Downer.

The transaction
would be funded “through a $300 million committed bank debt facility” read the
statement and be completed on October 31.

Image: Jessica Shapiro