RCR Tomlinson acquires AE&E

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Tue, 24 May 2011 9:46AM

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UPDATE 11.55am: Engineering company RCR Tomlinson has picked up AE&E, the Australian subsidiary of failed Austrian company A-Tec, to give it a foothold in the power and steam generation project market. 

RCR did not disclose the value of the transaction but said it would be funded from existing cash holdings.

"With the acquisition of AE&E Australia, RCR now holds all the major steam cycle and boiler technologies and licenses necessary to deliver the majority of power and steam generation projects in Australia," the company said in a statement.

RCR said it would acquire fixed assets including plant and equipment associated with the business and had also retained the services of several key AE&E staff.

However the company said it would not be taking on any project liabilities which AE&E Australia held prior to its sale.

RCR chief executive Paul Dalgleish said the acquisition of AE&E Australia would broaden the range of energy technologies that the RCR Energy business can offer customers in the industrial and utility sectors.

AE&E was placed in administration in November last year, just weeks after being dumped as a contractor on the Sino Iron Ore project in the State's North West.

AE&E was still working on BHP's Worsley Alumina expansion project when it collapsed.

RCR's corporate advisers for the transaction were Lincoln Crowne & Company and Allens Arthur Robinson acted as legal counsel.

RCR shares were up one cent to $1.61 at 11.55am.