acquisition

Acquisition of TSF Engineering
Envirozel Limited (ASX: EVZ) is pleased to announce it has entered into negotiations under a non
binding offer to acquire the business of TSF Engineering.
TSF Engineering is a Sydney based operation which specialises in the design and installation of
power generation equipment, communications equipment and marine installations. TSF operates
throughout Australia, Asia and the Pacific region.
Established in 1966, TSF Engineering has a proven history of profitability and has completed
significant contracts for an impressive client list including:
 St George Bank
 Westpac Bank
 Investa
 IBM
 Tabcorp
 Tenix
 Global Switch
 New Children’s Hospital, Westmead
 Australian Department of Defence
 Royal Brisbane Hospital
 Northern Territory Electricity Commission
The acquisition is subject to:
 The satisfactory completion of a comprehensive Due Diligence process.
 Execution of a purchase agreement for the business.
 Envirozel Limited shareholders approval (if deemed necessary).
Envirozel Limited Chairman, Mr Gordon McKern stated;
“The proposed acquisition of the business of TSF Engineering follows on from our recent successful
acquisition of the National Engineering business. The TSF Engineering acquisition would increase
the Envirozel Group’s annualised turnover to in excess of $100 million. In addition, Envirozel will
pursue synergies between the operating businesses and anticipates significant organic growth will
occur within all the operating businesses in the coming years”.
The TSF Engineering business will meet Envirozel’s acquisition criteria, which is as follows:
 Well established, profitable companies with good management
 Minimum of five years profitability
 Transaction size up to $25 million
 Must have strong organic growth potential
Mr McKern further stated:
“TSF Engineering is a profitable operation which will provide the Envirozel Group with a geographic
entry into the lucrative Sydney and NSW market”.
“TSF Engineering will also provide many opportunities for the other businesses in the Envirozel
Group and vice versa”.
Finally, Mr McKern stated:
“Envirozel believes the acquisition of TSF Engineering is expected to be earnings per share
accretive”.
The anticipated acquisition cost of the TSF Engineering business is in the vicinity of $14 million.
Envirozel Limited will in due course provide the market with further information on the progress of
this acquisition in line with the ASX’s continuous disclosure requirements.
Yours faithfully
Ian Wallace
Company Secretary
For further information, please contact:
Gordon McKern
Executive Chairman
Envirozel Limited
Tel: +61 3 9670 4545
E: [email protected]