Administrators continue carve-up of RCR with $10m sale
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RCR Tomlinson’s mining technologies and heat treatment businesses have been picked up by Perth-based civil and mining contractor NRW Holdings in a $10m deal.
RCR (ASX:RCR) went into voluntary administration last year after the weight of cost blowouts at its solar projects became too heavy for the troubled company to carry any longer.
It came two days after a class action was launched by shareholders angry about a “catastrophic decline in their share value”.
It seems logical NRW would pick up RCR’s Western Australian mining and heat treatment businesses given CFO Andrew Walsh spent four years in the same role with RCR and the two companies share some of the same key clients.
“This is a financially compelling acquisition with the businesses providing complementary services and delivering a diversified base of recurring maintenance and project revenue,” Mr Walsh said.
The two RCR businesses generated about $110m in revenue in FY18.
NRW says the businesses have a track record of delivering positive earnings and will be earnings-per-share accretive on a full year basis, excluding integration and other one-off costs.
So far, the RCR administrator McGrathNicol Restructuring has sold the rail business to John Holland, the energy services business to The Environmental Group and the laser business to Unique Metal Works.
McGrathNicol said it was continuing to work with a number of parties interested in the remaining RCR businesses.