The acquisition formed to continue growth in business
The engineering services industry, WestStar Industrial, entered into the acquisition of steel fabrication provider Alltype Engineering. According to WestStar Industrial, their acquisition extends limit and accelerate towards increased revenues and earnings with continue growth strategy.
This acquisition diversifies and expands WestStar’s ability to provide end-to-end project solutions through workshop fabrication, site installation and construction and maintenance services to a broad range of industries.
Privately-owned Alltype has 35 years of earnings history which provides a robust revenue baseline, which forces WestStar to look forward to increasing its trade in oil, gas, water and power generation industries that continue to build a strong, diversified, engineering company.
This acquisition is also expected to bring $1.6 million of cash on top of $3.8 million of property, plant and equipment assets to WestStar.
Develops business in various industries
Under the acquisition, Alltype is expected to hold approximately $4 million of plant and equipment. “We are excited by the opportunity to join WestStar and see it as a valuable opportunity for each of Alltype and WestStar to continue their growth with there being significant opportunities from a combination of the Alltype and WestStar businesses,” said, Alltype Managing Director, Kelvin Andrijich.
WestStar would grow and increase its service offering, bringing contracted recurring revenues, and providing a customer base across the oil and gas, water and power generation sectors. Also, focusing on to develop risk-free company’s operations.
Alltype, an employer of around 120, boasts a steel fabrication capability from a 7000 square meters workshop, industrial maintenance services, and a national delivery capability.
Alltype’s executive management team, including managing director Kelvin Andrijich and chief operating officer Colin Heitman who are also part owners in the business, will continue to manage Alltype from their new roles within the team.