Taranaki engineering firm sold to Aussies
A Taranaki oil and gas engineering company's rapid business growth reached a pinnacle yesterday when it was sold to an Australian organisation for more than $16 million.
An announcement to the Australian stock exchange yesterday by listed Brisbane-based engineering company LogiCamms revealed it has acquired New Plymouth-headquartered ITL for an initial purchase price of NZ$16.25 million.
The money is made up of $11.25m in cash and $5m in LogiCamms shares, with additional performance payments of up to $5m over two years.
The sale represents a big result for ITL's six shareholders - Andrew Smith, Graham and Kim Gilkison, Ryan McDonald, Alan Hooker and Colin Fromont.
Formed in 1988 by three employees of the former Natural Gas Corporation as a company specialising in design-and-build engineering for industrial process plants, particularly in the oil and gas sector, ITL has since achieved rapid business growth.
Today it boasts a workforce of more than 140 and is expected to achieve revenues of $28.2m and a net profit of $4.5m this financial year.
The company will remain based in New Plymouth and now looks set to achieve even more business growth.
Under the new arrangement Mr Fromont, who is currently ITL's general manager, will become LogiCamms' New Zealand operations director.
Mr Hooker and Mr Smith will also remain in New Plymouth, while Mrs Gilkison and Mr McDonald will be based in Brisbane.
Mrs Gilkison will split her business time between New Zealand and Australia.
ITL's headquarters in the former New Plymouth RSA building on Devon St East will now become LogiCamms' New Zealand base, but it will continue to operate under the ITL brand, support its existing client base, and build its presence in New Zealand.
Prior to the acquisition, the two companies had an existing strategic partnership, having successfully worked together for gas industry customers in Australia.
LogiCamms' managing director Steve Banning said this working relationship had shown that both companies had complementary capabilities.
"ITL offers a unique strategic and cultural fit with LogiCamms, and it will accelerate our company's expansion in the hydrocarbons sector," he said.
"We are very excited to see this highly regarded Taranaki business join our company and we look forward to future pursuits together."
Mrs Gilkison said she and her fellow shareholders were excited to be joining LogiCamms.
The company's existing customer relationships, geographic footprint and complementary culture would provide expanded and diverse career opportunities for ITL staff, she added.
"LogiCamms will expose us to a much wider range of opportunities to offer our specialist capabilities to customers in international markets."
Taranaki Daily News