Queensland-based engineering company acquired

LaserBond has entered into a Share Sale Deed for the acquisition of Peachey’s Engineering located in Gladstone, Queensland.

Peachey’s has been operating since 1981. Sales of approximately $6.8 million and an EBIT of approximately $1.4 million were achieved for the year ended 30 June 2008. The initial purchase consideration for the business is $3.0 million, consisting of $2.5 million cash and $0.5 million in scrip priced at $0.15 per share. The shares are to be escrowed for two years from date of issuance.

In addition to the initial payment of $3.0 million, there is an earn-out in place over the next two financial years whereby a maximum additional $2.2 million may be paid to the vendors on the delivery of incremental growth in EBIT for the acquired business over the earn-out period. The incremental EBIT will be valued on a multiple of 3.5 times. Assuming the performance hurdles are met the additional consideration would comprise cash and scrip.

This acquisition represents the next step in the company’s plan for expansion into strategic markets and locations where infrastructure support services to the mining and materials processing industries align with the company's reclamation and advanced surface technology offerings.

Settlement of the transaction is anticipated in late November 2008.