GR Engineering acquires Hanlon

GR Engineering Services has entered into an agreement to purchase Arizona, US-based Hanlon Engineering & Associates
GR Engineering acquires Hanlon GR Engineering acquires Hanlon GR Engineering acquires Hanlon GR Engineering acquires Hanlon GR Engineering acquires Hanlon

Hanlon Engineering has worked on more than US$2 billion worth of projects, according to the company

Haydn Black

The multi-disciplinary engineering services firm provides engineering, procurement and construction management services between conception and commissioning to the mining sector in North America. Hanlon employs around 40 staff at its facilities in Arizona and Nevada.

Geoff Jones, managing director of GR Engineering, said the move on the 21-year-old firm "aligned with GR's growth strategy".

He added: "Hanlon has a strong local brand with an excellent safety record and longstanding relationships with major mining clients. Hanlon has an experienced management team capable of taking advantage of the numerous growth opportunities that exist in the Americas."

Hanlon claims to have completed more than 1,500 projects with a constructed value of over US$2 billion since its founding in 1999, working for the likes of Ausenco, Barrick Gold, BHP, Freeport McMoRan and Newmont Mining. In recent years Hanlon has also worked in Central and South America, and completed feasibility studies for European projects.

Based on Hanlon's current workflow, identified growth prospects and GR's existing pipeline of work in the Americas, Jones anticipates it will be earnings per share accretive within 18 months.

While Jones said Hanlon would immediately contribute to revenue, its earnings will make no impact on the 2020 financial year guidance of between A$200-220 million.

The terms and conditions of the purchase were not disclosed, but the deal should close within six weeks.

Argonaut Securities had a positive view of the deal.

"It provides another reason to be positive on GNG's outlook; while deal information is scant, we expect the diversification the US acquisition brings will smooth future earning streams," analyst Ian Christie said.

Earlier this week GR secured a letter of intent for an engineering, procurement and construction contract for the development of a 20,000t/y battery graphite facility at Kwinana, Western Australia, with EcoGraf.