Engineering firm Duratec has bought out Canning Vale-based industry peer EIG Australia in a deal worth $9 million, in a move to boost its fuel and electrical infrastructure offerings.
Engineering firm Duratec has bought out Canning Vale-based industry peer EIG Australia in a deal worth $9 million, in a move to boost its fuel and electrical infrastructure offerings.
Privately-owned EIG specialises in fuels and fluid transfer, with contracts across the defence, energy, mining and industrial sectors and has worked alongside Duratec on a number of occasions.
The company has built fueling facilities for Mineral Resources at Ken’s Bore, Rio Tinto at Western Turner Syncline, and Fortescue at its tug boat harbour in Port Hedland.
But it has also established itself as a key supplier to the Australian Defence Force – a sector in which Duratec has sought to grow its position in recent years.
As a subcontractor of Duratec, EIG has worked on the Oxley Wharf extension, a system fuel upgrade and a major diesel filtration facility among other major projects at HMAS Stirling on Garden Island and completed work at Campbell Barracks and RAAF Pearce.
The $9 million deal will bring EIG in-house at Duratec, expanding the firm’s end-to-end service capabilities.
Duratec managing director Chris Oates said his company saw an opportunity to unlock value through the deal, citing its 2022 acquisition of Wilson’s Pipe Fabrication (WPF) as a comparative example.
“With EIG, we see a similar opportunity to scale specialist expertise, strengthen our self-perform model, and deliver strategic outcomes across the defence, energy and mining and industrial sectors,” he said.
“Having worked with EIG for many years, we thoroughly understand the business and look forward to expanding it.”
Duratec will make an up-front cash payment of $4.55 million and 650,000 shares.
A maximum $3.8 million earn-out will be payable in July 2027, subject to a combined earnings target across FY26 and FY27 of $4.4 million.
Duratec has also committed to retain EIG’s senior management team for a minimum of two years.
That commitment includes managing director Daniel Johnson and commercial operations manager Aldo Merlo.
Mr Johnson and Mr Merlo co-founded EIG in 2010.
Wangara-based Duratec currently has planning contracts for nuclear compliant infrastructure and upgrades at HMAS Stirling, where nuclear submarines are expected to dock in the years ahead under the Aukus trilateral defence partnership.
The acquisition of WPF in 2022 came with a facility at Naval Base and the contractor has built up a steady pipeline of work in the area.
Duratec shares were trading 0.3 per cent lower at $1.45 this morning.
