Australia’s Programmed Maintenance services has announced today it will acquire its rival and compatriot Skilled Group, a provider of labor hire and workforce services, by way of a scheme of arrangement.

Under the Proposal, Skilled shareholders will receive 0.55 Programmed shares and $0.25 cash per Skilled share, representing $1.79 of value based on Programmed’s last closing price.

The Skilled Board has recommended that Skilled shareholders vote in favor of the Scheme in the absence of a superior proposal and subject to an Independent Expert opining that the Scheme is in the best interests of Skilled shareholders.

Bruce Brook, chairman of Programmed, a provider of staffing, maintenance and facility management services, said: “Programmed and Skilled are two highly complementary businesses and we are delighted to have agreed an outcome that is a win-win for both sets of shareholders. The combination will unlock substantial value for both companies’ shareholders, including over $20 million of identified synergies, and create a more competitive and efficient workforce solution provider that will be well placed to take advantage of future growth opportunities.”

According to Programmed, the scheme is expected to be implemented in mid October, 2015. For the Scheme to proceed, approval by 75% of votes cast and a majority of SKILLED’s shareholders voting is required, in addition to Court approval and the satisfaction or waiver of conditions precedent under the SIA.

SKILLED Chairman, Vickki McFadden said, “The near term financial benefits to Skilled shareholders resulting from this transaction are compelling. The combination of SKILLED and Programmed creates the opportunity to unlock substantial synergies in the first year following implementation, and beyond. The combination will create a larger, more diverse business with the funding flexibility to support a range of organic growth and acquisition opportunities, and an enhanced equity market position.

“Our two organisations share a focus on delivering solutions that make our clients more productive and competitive. The company’s enlarged scale in staffing, maintenance and facilities management will facilitate lower costs, better customer service and enhanced organic growth opportunities.”

Skilled Group has over 80 offices across Australasia with annual revenues of around A$1.9 billion. Among other services, Skilled has an Engineering and Marine Services branch that provides contract maintenance and engineering services as well as offshore marine staffing, vessel chartering and management services.

Source: www.offshoreenergytoday.com

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