Sale of Geotech Group to Acciona

Background
  • The Geotech Group (Geotech) is a leading, Melbourne-based, provider of technically complex construction services in mid-sized projects within Australia, with strengths in heavy and light rail infrastructure, and ground engineering.
  • PwC was engaged as Geotech's M&A advisor on its divestment. PwC provided an integrated solution which proved critical to the success of the engagement, the solution included M&A advisory, tax structuring and share sale agreement services.
Transaction Summary
  • Acciona, the Spanish conglomerate (market capitalisation A$5.8bn), merged its Australian infrastructure operations with Geotech during February 2017, acquiring an 82.4% shareholding in the merged entity for cash consideration of $197m.
  • The merger transaction was structured to combine Geotech and Acciona's construction pipeline and facilitate the transformation of the business into a local tier-1 contractor.
  • Geotech's management shareholders acquired 17.6 per cent of the merged entity. The implied 100 per cent EV of Geotech is A$262m.
  • Significant interest was received from domestic and international trade buyers arising from PwC's extensive global network which translated into the receipt of indicative offers from buyers that met Geotech's strategic objectives.

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