Murray & Roberts has signed an agreement to acquire J.J. White Inc, a privately led, fourth-generation multi-trade engineering and contracting business headquartered in Pennsylvania, US.
Johannesburg Stock Exchange-listed Murray & Roberts said its wholly owned arm has inked the deal with James White IV and Trusts to buy all shares of J.J. White for up to $28.25 million.
Out of the total amount, $5.75 million is a deferred payout, including $3.5 million via promissory notes and an earnout payment of up to $2.25 million over a three-year period.
J.J. White is present in mid-Atlantic, mid-western, and New England construction industries dating back to its founding in 1920. It is licensed to deliver its services in 22 US states.
The company specializes in industrial maintenance and related construction services that covers a range of mechanical and electrical disciplines. It also has an in-house fabrication facility.
Murray & Roberts said the transaction is part of its strategy to diversify and expand the service offering of its energy, resources and infrastructure business platform in North America. This is similar to its recent diversification in the Asia-Pacific region, which has seen significant order book growth over the past three years.
The acquisition builds an immediate entry into new territories and new markets and will leverage J.J. White’s existing customer base to expand Murray & Robert’s existing US business unit Clough’s engineering, procurement and construction services and footprint across the country.
The value of net assets being acquired is $8.5 million of net working capital, with around $3.7 million of fixed assets and $16 million of intangibles.