AUSTAL announced that it has reached an agreement to buy ElectraWatch Inc. a United States based aluminum non-destructive testing technology company.
- Austal has agreed to acquire 100% of ElectraWatch Inc. for an all cash consideration of US$6.75 million, with no net debt.
- ElectraWatch has developed and deployed a unique portable system for the nondestructive testing of aluminum used in demanding environments in this case predominantly for aluminum ships.
- The primary customer for the technology to date has been the United States Navy both directly and through other major prime contractors and the system forms part of a monitoring environment for a variety of vessels.
- ElectraWatch is expected to have a CY18 revenue of US$2-3 million and is expected to continue to expand rapidly.
- The acquisition is expected to be earnings accretive in CY18 and beyond.
- Austal is the world’s largest aluminum shipbuilder with both defence and commercial operations. ElectraWatch will make a valuable contribution to the aluminum shipbuilding knowledge and experience base of the company and will grow the support and services business which is a key focus both in the USA and more broadly.
- ElectraWatch will continue to operate under its own brand inside the Service and Support business of Austal USA.
Commenting on the acquisition, Austal’s Chief Executive Officer, David Singleton said:
“The acquisition reflects Austal’s commitment to having the most advanced technology utilised in every element of our shipbuilding enterprise. Combining ElectraWatch’s patented technology with Austal’s advanced ship design, manufacturing and sustainment expertise will reinforce the company’s position as the industry leader in advanced aluminum shipbuilding.”
“In particular this acquisition will effectively support and increase our range of services for the shipbuilding and sustainment requirements of our key customer, the United States Navy” Mr Singleton said.
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.