Duratec Limited · ASX:DUR
Duratec — Merger or Acquisition (October 2022)
13 slides from Duratec's merger presentation, Oct 10, 2022
Slide 1: Investor Presentation – Acquisition of Wilson's Pipe Fabrication Pty Ltd
For personal use only DURATEC LIMITED Investor Presentation – Acquisition of Wilson’s Pipe Fabrication Pty Ltd 10 OCTOBER 2022
Slide 2: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER For personal use only This presentation has been prepared by Duratec Limited (ACN 141 614 075) ("Duratec", "Duratec Group" and the "Company"). The information contained in this presentation is for information purposes only. The information contained in this presentati
Slide 3: Acquisition Summary
ACQUISITION SUMMARY For personal use only Acquisition Snapshot • Duratec Limited has entered into a share purchase agreement to acquire 100% of Wilson’s Pipe Fabrication Pty Ltd (WPF) from the current shareholders of WPF • The sale price consideration consists of two parts: • An initial consideratio
Slide 4: Acquisition Details
For personal use only ACQUISITION DETAILS
Slide 5: Detailed Transaction Terms
DETAILED TRANSACTION TERMS For personal use only • Acquisition of 100% of Wilson’s Pipe Fabrication Pty Ltd ACQUISITION • Exclusive due diligence finalised • Completion is expected to occur by mid-October 2022 • Sale price consideration split into two considerations • Up to a maximum total of $18.0
Slide 6: Transaction Timeline
TRANSACTION TIMELINE For personal use only EVENT TIMING¹ Announcement of acquisition of Wilson's Pipe Fabrication 10 October 2022 Sale completion Mid-October 2022 Initial consideration paid Mid-October 2022 Earn-out consideration period closes 30 June 2023 Earn-out consideration EBITDA audit Late Au
Slide 7: WPF Overview
For personal use only WPF OVERVIEW
Slide 8: WPF Business Overview
WPF BUSINESS OVERVIEW For personal use only A leading provider of offshore installation, construction, maintenance and access services. • Business model is heavily driven by onshore, offshore and workshop fabrication activities – highly reliant on having reliable, capable, and experienced employees
Slide 9: Consistent Performance
CONSISTENT PERFORMANCE For personal use only WPF has a proven track record of being a profitable business. • Consistently maintained a revenue that averages circa $20.5 million and operating profit that averages just under circa $3.0 million annually over the past 4 years • Annual four-year operatin
Slide 10: Customer Base
CUSTOMER BASE For personal use only • Diverse range of clients • Strengthened and maintained its relationship with Santos Ltd and the Vermillion Oil & Gas Australia Pty Ltd over the last three years • Two key clients represented over 75% of WPF’s annual revenue over the last 5 years TOP 5 CLIENT BY
Slide 11: Strategy & Outlook
For personal use only STRATEGY & OUTLOOK
Slide 12: Strategic Rationale
STRATEGIC RATIONALE For personal use only The acquisition of WPF is consistent with Duratec’s strategy and will deliver significant benefits for shareholders, including: • Aligned operating model – strategically aligned business model and complementary focus on mechanical piping; • Diversification b
Slide 13: Outlook
OUTLOOK For personal use only • Dedicated senior manager from Duratec to drive integration of the WPF business • Plans to introduce Duratec services to WPF customers (3D reality modelling, asset condition surveys, cathodic protection, blast and painting services) • WPF has a strong pipeline of work