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Downer EDI – Media Release
Downer acquires Hawkins businesses in New Zealand08/03/2017
Downer EDI Limited (Downer) announced today that it had signed an agreement to acquire the construction, infrastructure and project management businesses of Hawkins, a New Zealand company, from the McConnell Family.
The Chief Executive of Downer, Grant Fenn, said Hawkins was an excellent strategic fit for Downer’s New Zealand business.
“Downer has a long and proud history in New Zealand that can be traced back more than a century,” Mr Fenn said. “Today we are a leading provider of services to our customers in a range of markets including transport, telecommunications and water.
“Hawkins is a New Zealand industry leader in construction and infrastructure and this acquisition will complement our existing Engineering, Construction and Maintenance capabilities while also providing a platform for growth. It is estimated that over NZ$50 billion will be invested in non-residential construction in New Zealand over the next five years.”
Mr Fenn said Hawkins would continue to operate under its current brand.
“Hawkins was founded in New Zealand 70 years ago and its highly skilled management team has built a strong reputation for delivering quality projects for its customers in both the public and private sectors,” he said.
Hawkins has a number of high profile projects across its portfolio including the SH16 Lincoln to Westgate upgrade, the construction of Auckland’s Park Hyatt Hotel, the Pier B Extension at Auckland Airport, Wellington Airport’s Rongotai Control Tower, Wellington City Council’s Arlington Housing Project, the Christchurch Town Hall, and the Avon River Precinct (Christchurch).
Mr Fenn said the acquisition would be funded through existing debt facilities and be earnings accretive in its first year.
The transaction is due to be completed on 31 March.[ends] Downer EDI Link
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Hawkins – Media Release
Hawkins Ownership to Change8th March 2017
Hawkins is pleased to announce that Downer is acquiring Hawkins’ construction, infrastructure and project management businesses from the McConnell Family. This offers a new era of opportunity for both organisations. Hawkins Construction will retain its brand and continue as an ongoing business. Hawkins Infrastructure, which complements Downer, will be integrated into its existing Infrastructure business. Together we look forward to continuing our proud New Zealand heritage of building better communities, with passionate people and great projects. Link
[Hawkins full announcement]
DOW / Announcements
Downer acquires Hawkins business in New Zealand
8:39am, 8 Mar 2017 | ASSET8 March 2017
DOWNER ACQUIRES HAWKINS BUSINESSES IN NEW ZEALAND
Downer EDI Limited (Downer) announced today that it had signed an agreement to acquire the construction, infrastructure and project management businesses of Hawkins, a New Zealand company, from the McConnell Family.
The Chief Executive of Downer, Grant Fenn, said Hawkins was an excellent strategic fit for Downer’s New Zealand business.
“Downer has a long and proud history in New Zealand that can be traced back more than a century,” Mr Fenn said. “Today we are a leading provider of services to our customers in a range of markets including transport, telecommunications and water.
“Hawkins is a New Zealand industry leader in construction and infrastructure and this acquisition will complement our existing Engineering, Construction and Maintenance capabilities while also providing a platform for growth. It is estimated that over NZ$50 billion will be invested in non-residential construction in New Zealand over the next five years.”
Mr Fenn said Hawkins would continue to operate under its current brand.
“Hawkins was founded in New Zealand 70 years ago and its highly skilled management team has built a strong reputation for delivering quality projects for its customers in both the public and private sectors,” he said.
Hawkins has a number of high profile projects across its portfolio including the SH16 Lincoln to Westgate upgrade, the construction of Auckland’s Park Hyatt Hotel, the Pier B Extension at Auckland Airport, Wellington Airport’s Rongotai Control Tower, Wellington City Council’s Arlington Housing Project, the Christchurch Town Hall, and the Avon River Precinct (Christchurch).
Mr Fenn said the acquisition would be funded through existing debt facilities and be earnings accretive in its first year.
The transaction is due to be completed on 31 March.For further information please contact:
Michael Sharp, Group Head of Corporate Affairs and Investor Relations +61 439 470 145About Downer
Downer EDI Limited (Downer) is a leading provider of services to customers in markets including: Transport Services; Rail; Mining; Utilities Services; Technology and Communications Services; and Engineering, Construction & Maintenance. We build strong relationships of trust with our customers, truly understanding and predicting their needs and bringing them world leading insights and solutions. Downer employs about 19,000 people across more than 200 sites and projects, mostly in Australia and New Zealand, but also in the Asia-Pacific region, South America and Southern Africa. For more on Downer, visit: http://www.downergroup.com.About Hawkins
Hawkins was established in Hamilton in 1946 by Fred Hawkins and has steadily grown over seven decades to become a leader in New Zealand’s infrastructure and project delivery. Hawkins employs about 700 people and specialises in the design and construction delivery of buildings and infrastructure that create stronger communities across New Zealand and also the Asia Pacific. For more information on Hawkins, visit http://www.hawkins.co.nzAttachments
Downer acquires Hawkins business in New Zealand (PDF)[ends] Hawkins Link
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The Downer group says the aquisition would ‘complement [their] existing engineering’.
RNZ News 11:21 am on 8 March 2017
Australia’s Downer buys Hawkins Construction
By Gyles Beckford, Business Editor
The country’s second biggest construction firm Hawkins has been bought by Australian engineering giant Downer EDI. The Downer group is a signifiant player in infrastructure projects in Australia and New Zealand and said the Hawkins business was a good fit for its business here. “Hawkins is a New Zealand industry leader in construction and infrastructure and this acquisition will complement our existing engineering, construction and maintenance capabilities while also providing a platform for growth,” said Downer’s chief executive Grant Fenn. Hawkins is involved in motorway and hotel projects in Auckland, is building Wellington Airport’s new control tower, and Christchurch’s town hall. Mr Fenn said Hawkins will continue to operate under its current brand.
Read more
### Stuff.co.nz Last updated 17:15, March 8 2017
Downer and Hawkins confident deal won’t raise competition issues
By Catherine Harris
The Commerce Commission says it is up to Downer to seeks its approval to buy one of New Zealand’s biggest construction companies if it suspects there are competition issues. Australian industrial conglomerate Downer EDI has agreed to buy Hawkins Group, regarded as second only to the size of Fletcher Building in the construction space. Downer said the purchase price was confidential but it has been reported that the Australian firm has been on the hunt for acquisitions of between A$50 million and A$100m. About $50 billion will be invested in New Zealand’s non-residential construction sector in coming years. Downer spokesman Michael Sharp said the deal did not hit the threshold to trigger the need for Overseas Investment Office approval, but the Commerce Commission had been notified on Wednesday. A commission spokesman said the clearance regime in New Zealand was voluntary.
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### NZ Herald 9:32 AM Wednesday Mar 8, 2017
Downer agrees to acquire Hawkins
Downer EDI, the Australian-based infrastructure and mining firm, has agreed to acquire Hawkins from the McConnell family, in a further sign of consolidation in the construction industry. No price was given for the acquisition, which would be debt funded, Downer said in a statement to the NZX. The deal would add to earnings in its first year, Downer chief executive Grant Fenn said.
Hawkins was founded about 70 years ago and currently has contracts including SH16 Lincoln-to-Westgate upgrade, the construction of Auckland’s Park Hyatt Hotel, the Pier B extension at Auckland International Airport, Wellington International Airport’s Rongotai control tower, Wellington City Council’s Arlington housing project, the Christchurch Town Hall, and the Avon River Precinct in Christchurch. Fenn said the acquisition would allow Downer to benefit from ongoing construction activity in New Zealand. “It is estimated that over $50 billion will be invested in non-residential construction in New Zealand over the next five years,” he said.
The acquisition would follow Fletcher Building’s acquisition of rival construction company Higgins Group Holdings last year for $303 million. That deal was approved by the Commerce Commission after Fletcher dropped the Horokiwi Quarries business from its application to reduce its dominance in the aggregates market.
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