LogiCamms to merge with Process Essentials

LogiCamms Limited has signed an agreement to merge with Australian process engineering firm Process Essentials Pty Ltd.

The merger is intended to provide LogiCamms with a new strategic capability to be engaged in projects much earlier in its life cycle, and to complement their existing electrical and mechanical capabilities, giving it the ability to execute larger higher value projects.

Under the agreement, LogiCamms will acquire 100% of Process Essentials holding company HSE Holdings Pty Ltd. The agreement is subject to the completion of due diligence, the approval of LogiCamms' shareholders (if required) and a number of other conditions. Due diligence is well advanced and expected to be completed within four weeks.

Process Essentials has revenues of approximately $4m annually and its team of 15 staff specialise in the delivery of process engineering and EPC solutions to the chemical, resources, energy and food sectors in Australia and Asia. The firm is based in Brisbane, Queensland.

The majority of the consideration is to be settled by the issue of LogiCamms shares, the number of which will depend on finalisation of Process Essentials' 30 June 2009 accounts. It is anticipated the number of shares to be issued will be between 10 and 15% of LogiCamms' existing issued capital. The transaction is anticipated to be earnings per share accretive to LogiCamms.

LogiCamms' Managing Director, Adam Keats, commented, “We are confident new market opportunities and value will be derived from the amalgamation of our two businesses. Our markets are aligned, our services are complementary and our combined expertise will greatly improve the value we can create for our clients, staff and shareholders.”

Process Essentials' Managing Director, Jason Hepburn, commented, “We are very excited to be joining LogiCamms and are confident this will enable increased capacity and expertise to deliver outstanding customer solutions. Our companies have worked together successfully over many years, have strong cultural alignment and this merger is a natural evolution for us.”