After entering a letter of intent in late December, Neptune said it yesterday signed an agreement to spend up to $8.35 million buying all the assets in Link Weld via cash and shares.

Neptune has previously said the acquisition would add about $12 million in annual revenue. The acquisition would also add specialist engineering capabilities to Neptune’s business.

“There are significant cross-selling opportunities between Link Weld and Neptune’s other businesses.

“Already we are witnessing some early opportunities emerging. Specialist fabrication services are required in almost all of our jobs and it will form an integral part of our end-to-end Inspection, Repair and Maintenance (IRM) model.”

Meanwhile, Link Weld principal Nino Amato, who will stay on as general manager for the next three years said the deal would open up more business opportunities.

“Working as part of Neptune gives us a broader market, access to a wider customer base and the ability to work on larger scale projects in the oil and gas and resources sectors,” Amato said.

“There is significant scope to take Link Weld to the next stage of its development and we are encouraged by the prospects.”

As well as Amato, the company’s 40 other full-time employees will also stay on.

Neptune said the acquisition was due to be completed on March 23 and would immediately start contributing to its earnings.

In the past six months, Neptune has announced takeover plans for four services companies, the latest being Subsea Developments Australia.