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Hastie buys Rotary in m&e drive

Hastie Group, the Australian building services giant, bought Rotary for in excess of £100 million today as it seeks to carve inroads into the UK building services market.

 

Hastie is Australia’s largest commercial and industrial air-conditioning, refrigeration, electrical and hydraulics company. It is quoted on the Australian Securities Exchange and is a member of the S&P/ASX-300 Index.

 

For the six months to 31 December 2007, Hastie reported a AU$14.5 million profit on an AU$506m turnover – a 45 and 43 per cent rise respectively over the last financial year.

 

Last month, Hastie’s United Arab Emirates’ (UAE) division signed a deal to provide $70 million worth of m&e work inside the UAE. At the time of signing, the division said it had an order book with AU$90m worth of work to see it through “2009 and beyond”.

 

Rotary, based in Belfast, is one of the largest providers of “essential” building services to the Republic of Ireland, the UK, and the United Arab Emirates. It specialises in the provision of air-conditioning, m&e and maintenance services to the healthcare, education, industrial, commercial and retail sectors. In its last financial year, the family-owned firm reported a turnover of £238m.

 

Under the terms of the deal, which is expected to be completed in April, Rotary will continue to operate under its own name, and the existing staff and management structure is to remain.

 

David Harris, Hastie Group managing director and chief executive officer, said: “The Hastie and Rotary combination creates a major international participant the in the building services industry. This transaction provides immediate scale in the large UK market and strengthens our position in the Middle East where both Hastie and Rotary have growing businesses.”

 

In a joint statement, Shamus and Francis Jennings, said: “The coming together of Rotary and Hastie represents one of the most important initiatives to take place in this specialised sector for many years.”


A Northern Hemisphere Advisory Board (NHAB) is to be set up to oversee the combined interests of the two companies in their markets. Shamus Jennings, Rotary chief executive officer, will become the chairman of the NHAB. Serving alongside him will be Dr Francis Jennings, Rotary chairman; David Harris, Hastie Group managing director; and Chris Woodward, Hastie finance director.

 

He added: “The combination of our businesses will create a company with three major hubs in Australasia, the UK and Ireland, and the Middle East.

 

 

The services both companies offer complemtn each other perfectly and the culture of high quality professional delivery provides a unique synergy and world leading capability. The combination rpeserves our strong culture and helps create significant opportunity for further growth.”

 

 

“This is a company transforming transaction for Hastie. The Hastie and Rotary combination creates a major international participant the in the building services industry.

 

“Rotatry provides many of the same services to the same customer sectors as Hastie and operates a very similar decentralised business model. This transaction provides immediate scale in the large UK market and strengthens our position in the Middle East where both Hastie and Rotary have growing businesses.