Transport logistics and services optimisation company, Orcoda, has entered into a Share Purchase Agreement (SPA) to purchase 100 per cent of the shares in the Betta Group of Companies Qld Pty Ltd (BGC).
The acquisition is valued at $5 million as a combination of securities and cash.
Betta Group, whose customer base includes Aurizon, Ergon Energy, Queensland Rail, PowerLink, Q-Build, Australian Defence Force and the Bowen Basin mining industry, is exposed to growing infrastructure markets in Central Queensland.
These markets are likely to grow further with significant government stimulus to occur in major infrastructure given the nature of its status as part of essential services.
As a fully licensed asbestos demolition contractor, BGC is required for certain associated projects and runs a smaller business unit in Rockhampton under franchise called ‘Hydrokleen’.
It achieved A$9 million revenue and an EBITDA of A$2.1 million in the financial year ending 30 June 2020.
The majority of Betta’s contracts are remote and will benefit from Orcoda’s software, contracting and management expertise in managing our workforce and our assets (vehicles, plant and equipment) according to Geoff Williams, Betta Group Founder and Managing Director.
“The joining of our businesses will add significant value and efficiency to the business and enhance its profitability. There are multiple major infrastructure projects coming up in road, rail and air in Central Queensland and a combined Orcoda/Betta business will be well positioned to win a lot of these contracts,” he said.
Orcoda Managing Director Geoff Jamieson called Betta Group a perfect fit for Orcoda’s Resource Logistics division.
“Our contracting methodologies are the same. Once a contract is won, we will both manage the contract utilising our management skills in managing workers, assets and utilise our existing best in class software to optimise the project outcomes and deliver better value for our customers. Betta’s ISO qualifications will enhance the newly merged entity’s ability to win new infrastructure projects,” he said.