Source: Eureka
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  • Engenco (EGN) has agreed to purchase registered training organisation, Eureka 4WD for $4.5 million
  • Eureka is a Perth-based registered training organisation (RTO) that provides four-wheel-drive vehicle training
  • The acquisition price is equivalent to 2.6 times the company’s FY20 earnings before interest, taxes, depreciation and amortisation
  • Engenco says the deal will strengthen and complement its existing RTO, Centre for Excellence in Rail Training
  • On the market today, Engenco is trading flat at 55 cents per share

Engenco (EGN) has agreed to purchase registered training organisation, Eureka 4WD for $4.5 million.

Eureka is a Perth based registered training organisation (RTO) that provides four-wheel-drive vehicle training to the industrial, mining and consumer markets. It also undertakes heavy and vehicle licensing and training.

The acquisition price is equivalent to 2.6 times the company’s FY20 earnings before interest, taxes, depreciation and amortisation and importantly is expected to be earnings-per-share accretive for Engenco in FY22.

Engenco says the deal will strengthen and complement its existing RTO, Centre
for Excellence in Rail Training, which is focused on rail training.

Managing Director and CEO Kevin Pallas is pleased to welcome the Eureka team
to the company’s workforce solutions division.

“Eureka has been very successful in the Western Australian market providing best-of-class four-wheel-drive training, truck training and certification services to ensure the safe operation of these vehicles in both commercial and recreational applications,” he said.

“We believe there is an attractive national market opportunity to expand
Eureka’s services as we integrate the business into our Australian network,” he added.

On the market today, Engenco is trading flat at 55 cents per share at 3:15 pm AEST.

EGN by the numbers
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