Schultz Partners facilitates the sale of KJ Johnson to Southern Cross Electrical Engineering
The publicly listed company, Southern Cross Electrical Engineering Limited ('SCEE'), has acquired the family-owned power line business, KJ Johnson & Co Pty Ltd. Schultz partners were the exclusive selling agents for KJ Johnson in the sale of the long-established business.
In an announcement to the Australian Stock Exchange, SCEE stated:
Southern Cross Electrical Engineering Limited (ASX:SXE) is pleased to announce that it has executed an agreement to acquire the overhead power line business operated by K.J. Johnson & Co Pty Ltd (“KJJ”) for $9.6m. Completion is expected to occur on 7 th August 2009. The acquisition will be funded from existing cash reserves and represents an EBIT multiple of 2.2x.
As part of the transaction SXE will acquire the assets of KJJ’s including the premises in Bayswater, WA and the business name K.J. Johnson & Co.
KJJ was incorporated over 40 years ago and in recent years has been a major player in the overhead power line construction business in the Western Australian resource market. KJJ has approximately 30 employees and the current General Manager, Mr John North, will be staying on with KJJ as part of the acquisition.
SXE Managing Director, Stephen Pearce, said “the demand for overhead power line construction over the coming years from the resource sector is expected to grow. Southern Cross is already an active participant in this market and the addition of KJJ will increase our capacity to pursue these opportunities. With the strong project pipeline in front of SXE and the recent acquisitions of KJJ and Hindles, SXE’s focus over the next 12 months will be on the strong organic pipeline it has and to complete the integration of the acquired businesses.”