Monadelphous enters agreement to acquire High Energy Service

Key points

• Monadelphous enters agreement to acquire Perth-based High Energy Service
• HES provides high voltage electrical maintenance, testing, projects and engineering
• Acquisition supports Monadelphous' strategic efforts in energy transition

Full summary

Monadelphous Group Limited (ASX:MND) has announced it has entered into an agreement to acquire Perth-based high voltage services business, High Energy Service (HES). HES provides specialist high voltage electrical maintenance and testing, projects and commissioning, and engineering services to major resources companies in Western Australia, particularly within the iron ore sector. The business employs around 100 personnel and generates more than $30 million in annual revenue. The acquisition of HES supports Monadelphous' strategic efforts to expand its capabilities and support the development and ongoing maintenance of the essential electricity generation, storage and infrastructure needed for Australia's energy transition. Monadelphous will make a payment of $21.5 million to acquire HES, followed by a purchase price adjustment in accordance with the final net working capital position at completion. The Company expects the transaction to be completed by July 2025.

Outlook

The acquisition of HES supports Monadelphous' strategic efforts to expand its capabilities and support the development and ongoing maintenance of the essential electricity generation, storage and infrastructure needed for Australia's energy transition.