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- Verbrec (VBC) is pursuing “a significant growth opportunity” with the planned acquisition of employee training provider Site Skills Group
- Through its subsidiary Competency Training, Verbrec will pay $1.44 million in cash with a further $500,000 to be paid upon the satisfaction of certain conditions
- The purchase includes select employees and contractors, training materials, training facilities and student databases
- Once complete, the addition of Site Skills is expected to triple Competency Training’s revenue to around $18 million each year
- Verbrec is up 14.7 per cent to 19.5 cents per share
Verbrec (VBC) is pursuing “a significant growth opportunity” with the planned acquisition of employee training provider Site Skills Group.
With facilities in Perth, Darwin, Brisbane and Gladstone, Site Skills provides training and qualifications to companies an employees within the mining, oil and gas, and construction and engineering sectors.
It runs approximately 200,000 courses and over the last 10 years has offered training to more than 150,000 Australians.
Through its wholly owned subsidiary Competency Training, Verbrec will pay $1.44 million in cash for the acquisition of Site Skills, which is a wholly owned subsidiary of Site Group International, with a further $500,000 to be paid upon the satisfaction of certain conditions.
The purchase will be funded from existing cash and bank debt and includes select employees and contractors, training materials, training facilities and student databases.
An additional $1 million in cash will be paid should Competency Training’s aggregated revenue for the 2022 financial year exceed $18 million, with another $1.5 million to be paid if revenue exceeds $20 million in the 2023 financial year.
Verbrec said the purchase is fully aligned with its refocused strategy of diversifying its revenue stream sources and bolstering sub-scale business units.
“Competency Training’s acquisition of Site Skills assets is a milestone achievement for the company and provides the opportunity for significant growth of our training business,” said Linton Burns, Managing Director of Verbrec.
“Over recent months we have worked tirelessly to implement our refocused growth strategy and ensure each service line has scale operations and delivers solid ongoing revenue and margin growth,” he added.
The transaction is expected to close in the next four to six weeks.
Verbrec is up 14.7 per cent to 19.5 cents per share at 3:15pm AEDT.
