Victorian modular construction business, KLMSA, bought by ASX listed SHAPE Australia.
Purchase of modular construction business by fit-out and construction specialist, SHAPE Australia, states clear intention to harness and develop offsite manufacturing opportunities to complement core strengths and pursue MMC (modern methods of construction) opportunities.
According to a company statement published last Friday, SHAPE Australia has entered a contract to buy 100 per cent interest in Victorian-based modular construction business KLMSA. The total consideration is $10.7 million which will be funded through a three-year amortising term loan facility.
Founded by Susanne Rolland and Geoff Marshall, KLMSA, has over 30 years of experience in modular construction and provides modern and cost-effective building solutions to schools, health, community and government services.
The modular construction business is to be integrated over the next 12 months. Once fully integrated, it is expected to generate an additional $25 million in revenue and $2.5 million in earnings before interest, tax, depreciation and amortisation.
“By pairing KLMSA’s deep understanding and experience in designing and manufacturing innovative and attractive modular buildings, combined with SHAPE’s strengths in high quality, risk management and stakeholder management, we will be able to offer our clients an exceptional delivery experience with all the benefits of offsite construction, including faster schedules, improved safety, minimal on-site disruption, and more sustainable construction,” SHAPE CEO Peter Marix-Evans commented.
ABOVE: Peter Marix-Evans, CEO, SHAPE Australia.
The acquisition allows SHAPE to diversify its capabilities to deliver greater value for its clients and provide increased career opportunities.
“Over the past 30 years, we’ve evolved our offering from fit-outs to a multi-product portfolio, and this acquisition is a significant landmark in the continued diversification of our capabilities.”
ABOVE: Fit-out work by SHAPE Australia at The Star in Sydney’s Pyrmont.
“With the added ability to build offsite, SHAPE will ensure minimal on-site construction time, meaning less disruption to operational continuity, less live environment safety risks and improved sustainability outcomes, like waste reduction.”
As part of the transaction, KLMSA Director Susanne Rolland and Geoff Marshall have resigned and will be replaced by Mr Marix-Evans and Scott Jamieson from SHAPE.
Both Ms Rolland and Mr Marshall will remain in an advisory capacity to ensure a smooth transition.
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