Unlisted engineering firms mull their options
SKM and Calibre Global are both looking to cash in on their rapid growth, according to reports in the Australian Financial Review (AFR).
Both engineering firms enjoy exposure to the massive expansions being undertaken by mining giants BHP Billiton and Rio Tinto. Both have also appointed professional advisory firms to advise on their capital structures.
SKM, which has grown from 600 to 8,000 staff over the last 10 years, has advisory firm Greenhill Caliburn working on its options.
Chief executive Santo Rizzuto told the AFR that a merger of equals was a possibility, as was a merger with a larger firm.
The firm’s books showed revenue of $1.1bn in 2011 with net profit of $100m. Speculation suggests that the firm has held informal talks with WorleyParsons about a possible deal.
Calibre Global has appointed Goldman Sachs and UBS to prepare the company for listing, with the AFR suggesting that a $400m initial public offering (IPO) was on the cards.
US private equity firm First Reserve is Calibre’s largest shareholder, and the engineering firm earned around $40m last financial year (before interest, tax, depreciation and amortisation).