Engineering services company RCR Tomlinson Limited (ASX:RCR) has arranged to acquire AE&A Australia for an undisclosed sum.
RCR subsidiary RCR Energy has entered into a conditional deal to acquire the power plant and steam generator equipment provider in a deal expected to be funded from existing cash reserves.
Announcing the agreement, RCR said the acquisition should provide it with the technologies and licenses needed to deliver the majority of steam cycle power plant and steam generation projects in Australia.
“RCR is now uniquely placed in Australia, New Zealand and Asia as a leading provider of engineering and construction services for power generation projects,” RCR CEO Paul Dalgleish said.
If the deal goes through, RCR will also acquire plant, equipment and other fixed assets, but will not have to take on any project liabilities held by the company prior to the sale.
AE&A Australia and its predecessor companies - Alstrom Australia, Babcock Australia and ABB - have been operating for over 100 years.
RCR Tomlinson is headquartered in Perth and has operations across Australia and New Zealand.
RCR shares gained 3.75% in Tuesday's trading to $1.660.
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