Infrastructure firm Downer EDI Limited (Downer) has signed an agreement to acquire all of the shares in Tenix Holdings Australia Pty Limited (Tenix) for A$300 million.
Downer has acquired the company as it seeks to form a new core business dealing in electricity, gas, and water utilities. It says there are strong prospects for future growth in the Australian market.
Downer chief executive officer Grant Fenn says there is little overlap between the two companies, and the acquisition of Tenix will be the foundation of Downer’s utility business.
“Tenix is a leader in the electricity, gas and water sectors in Australia and New Zealand,” says Fenn. “There are strong prospects for future growth. Tenix has played a role in driving efficiency from the privatisation of electricity networks in Victoria and South Australia and is placed to do the same in other states as power distribution assets are privatised.
“Tenix also designs, constructs and maintains water and waste water treatment plants for a number of municipal councils and has developed a reputation for providing leading solutions for its customers in this sector,” says Fenn.
Tenix’s power, gas and water businesses contribute about 85% of total revenue.
The resources and energy business contributes about 15% of revenue. It focuses primarily on gas and renewable energy and this fits well with Downer’s existing capability in these markets.
