Opus International spends A$9 mln on Australian rail engineering consultancy

Monday 5th December 2011

Opus International Consultants, the engineering firm which was awarded one of four mandates to lead design the reconstruction of Christchurch city, will spend A$9 million to buy Australian rail engineering consultancy Coffey Rail.

Wellington-based Opus agreed to acquire Coffey Rail and related company Asia Pacific Rail, which will extend its footprint across the Tasman and is expected to contribute $1 million to Opus’ bottom line in the first full year.

“We see real synergistic value in the rail infrastructure consulting and engineering of Coffey Rail and our civil and structural capability,” chief executive David Prentice said in a statement. “This will significantly increase our rail service offering, not just in Australia but also globally.”

Opus boosted its first-half net profit to $11.3 million in the six months ended June 30, though that was bolstered by a $1.4 million tax credit. Earnings before interest and tax fell 13 percent to $13.5 million, with the natural disasters in Canterbury and Queensland dragging on the company’s performance.

The unit will be renamed Opus Rail, and will be led by Coffey Rail senior executive Andy Nicol.

ASX-listed Coffey International put its rail business under review in June after it decided to streamline its business, and in August told shareholders the unit doesn’t offer long-term international growth potential.

Coffey bought Asia Pacific Rail and John Wetheimer Consultants in 2007 for A$6.9 million in cash and shares.

Shares in Opus rose 1.7 percent to $1.80 in trading on Friday, and have shed 9.1 percent this year.

BusinessDesk.co.nz

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