Verbrec Limited (ASX:VBC) entered into binding agreement to acquire Energy Infrastructure Management Pty Ltd from AGL Energy Limited and Arrow (Northern Generation) Pty Ltd for AUD 10.1 million on December 29, 2020. The consideration will be paid in cash. Under the terms of agreement, consideration includes approximately AUD 7.455 million of working capital of which the vast majority is cash. The final consideration is subject to the customary up or down adjustment on the closing working capital position. The acquisition of EIM being funded out of existing cash reserves, with the net payment (cash paid less cash acquired) equaling AUD 3.2 million. In addition, Arrow Energy have agreed to extend an existing pipelines operations and maintenance contract for a further 3 years as part of this transaction. Energy Infrastructure Management Pty Ltd team will be joining Verbrec Limited. The transaction is expected to close on December 31, 2020. The acquisition is expected to be EPS accretive in FY22 after some one-off restructuring costs to be incurred in FY21.

Verbrec Limited (ASX:VBC) completed the acquisition of Energy Infrastructure Management Pty Ltd from AGL Energy Limited and Arrow (Northern Generation) Pty Ltd on December 31, 2020. Isaac West of Jones Day (Australia) acted as legal advisor to Verbrec Limited (ASX:VBC).