APTS - established in 2003 with offices and lab testing facilities in Perth and Brisbane with contract operations in Karratha and Darwin - also provides non-destructive testing, calibration, pre-commissioning, shutdown and maintenance services to the oil and gas, power and water sectors.

 

Valmec believes the takeover will enable it to leverage off its current market footprint to open up new revenue streams around pipeline construction and maintenance, particularly with the expected expansion of the east coast sector over the next five years as industry scrambles to solve the gas crisis.

 

The takeover will also give Valmec access to APTS' blue-chip clients in Woodside Petroleum, Chevron Corporation, Shell and Origin Energy having worked on the Pluto, Wheatstone, Queensland Curtis LNG, Gladstone LNG, Gorgon and Gladstone LNG.

 

APTS has also worked on Jemena's East Gippsland Expansion project and APA Group's Mondarra gas storage facility, both with Enerflex.

 

Underpinned by a strategic "wellhead to pipeline" rationale, the deal will also expose Valmec to engineering, procurement and construction projects higher up the supply chain, and give it access to 55 staff of which about half are field, workshop technicians and specialists, plus an experienced management team.

 

Valmec will also get APTS' NATA-accredited and specialised calibration facilities, NDT x-ray equipment, along with specialised and fully accredited radiation equipment storage facilities.

 

APTS put the call out recently on the Resolve portal requesting urgent expressions of interest to buy it out, with McGrathNicol appointed as receiver and manager for reasons of "poor financial control", despite reported turnovers of $10-20 million over the past four years.

 

Yet the company is also expected to derive EBITDA returns of about 10% once Valmec's expected synergies are realised.

 

APTS is also keeping itself busy, with FY18 forecasts underpinned by about $5 million of long-term service agreements with Tier 1 oil and gas clients and more than $13 million of submitted tenders and current clients.

 

Yet only last year APTS opened up a new branch in New Plymouth, New Zealand responding to service supply opportunities, thus growing its existing presence in that country.

 

APTS also teamed up with Australian oil services expert Biokem and TSX-listed Shawcor to promote a trend for experienced companies to align and set benchmarks for service and skilled labour across Oceania.

 

Valmec was trading at 25c this morning.