Melbourne network services company Service Stream has completed its acquisition of a Melbourne utility infrastructure services firm for $161.7 million.
Service Stream announced on December 3 it was buying Comdain Infrastructure, which provides engineering and asset management services to the water and gas sector in eastern Australia.
The acquisition is now settled, Service Stream said on Wednesday.
‘The acquisition is strategically significant to Service Stream, providing the Group with enhanced revenue diversity across well-known gas and water markets and through a familiar client base,’ Service Stream said.
Comdain ‘will progress as a business unchanged,’ the company said on its website.
It expects to generate $320 million in revenue and earn $22 million before tax, depreciation and amortisation this fiscal year.
Founded in 1962, its projects include working on Sydney Water’s sewer network, building water mains in Queensland and maintaining gas mains in Victoria for Multinet Gas.
Service Stream installs and maintains mobile phone towers, as well as reads millions of gas and meters each year, the company says on its website.
It has 1800 employees and more than 3500 active contractors.
The buyout was financed with $68 million in new shares and the rest in cash, with Service Stream borrowing $60 million to fund the acquisition. The company said it was suspending its share buy-back program.
Service Stream shares were down 0.85 per cent, or 1.5 cents, to $1.745 at 1.15 pm.