Gamuda Australia enters a binding agreement to acquire Downer’s Australian Transport Projects (DTP) Division from Downer EDI Limited.
The AUD$212 million (enterprise value) transaction will transfer DTP’s business, people and capabilities to Gamuda. This includes around 1,000 staff and a forecast work in hand of approximately $2 billion across Australia.
The newly acquired business will operate standalone within the Gamuda group of companies, trading as DT Infrastructure Pty Ltd (DTI).
The acquisition will complement the growth and success of Gamuda Australia, which secured three major project wins in 2022 with revenue of more than $3.3 billion including the Sydney Metro West – Western Tunnelling Package, Coffs Harbour Bypass and M1 Raymond Terrace extension. Delivery of these projects are on schedule.
The significant addition for Gamuda of people and capabilities through DTI will provide a unique offering within the Australian infrastructure and construction market. The combination of global expertise with local experience will be underpinned by engineering innovation, collaborative contracting and leading sustainability practices.
DTI’s recognised rail capability will be further strengthened by Gamuda’s Asia-Pacific expertise, which has delivered turnkey metro rail projects including the Klang Valley Mass Rapid Transit lines (KVMRT). Over the last 12 years Gamuda has constructed two end-to-end KVMRT lines delivering over 100km of metro rail track and 65 new stations in Kuala Lumpur.
Group Managing Director of Gamuda, Dato’ Lin Yun Ling, said establishing DT Infrastructure within the Gamuda umbrella of companies will support a wider variety of project delivery for customers in Australia.
“This acquisition is a strategic move for Gamuda in line with its regional growth plan. The Group is targeting to achieve a sustainable AU$3 billion of annual revenue from the enlarged Australia business within the next three years,” says Group Managing Director of Gamuda Dato’ Lin Yun Ling.
“We believe there are very substantial growth opportunities in Australia, and this move enables us to expand not only the volume of projects we do but also the different aspects of transport infrastructure work we will be undertaking – from large tunnelling jobs to medium-sized projects, rail, track construction and maintenance, line electrification, delivery of depots and stabling yards, and construction of railway stations. This will increase our competitive edge within the Australian market and fast-track Gamuda’s expansion plans,” says Group Managing Director of Gamuda Dato’ Lin Yun Ling.
Ewan Yee, Executive Director Gamuda Australia said the transaction provides an exciting future for our Australian teams.
“Gamuda Australia has grown our local team from 50 to almost 400 people in less than a year. Delivery of our projects is progressing well, and we are focused on growing a business with a fresh approach towards collaborative teamwork and developing our people,” says Executive Director Gamuda Australia Ewan Yee.
“Adding local capability in rail and transport projects helps unlock our international experience and innovation in Australia as a turnkey infrastructure provider,” says Executive Director Gamuda Australia Ewan Yee.
“There’s a strong alignment between the businesses in terms of culture and values. Maintaining our approach to collaborative contracting, striving for engineering innovation and putting sustainability at the heart of project delivery will produce great outcomes for our customers and local communities,’’ says Executive Director Gamuda Australia Ewan Yee.
Disclosures of the binding agreement have been made to the ASX and Bursa Malaysia. Completion of the sale will be subject to Foreign Investment Review Board approval and is expected to occur before 30 June 2023.
Source: © 2023 Gamuda (Australia) Branch
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