Cardno Limited Acquires Raba Kistner: What Investors Need to Know

Cardno Demerges Intega Group

On December 17, 2018, Cardno Limited (ASX: CDD) has made an announcement related to its recent acquisition with the help of the press release. As per the press release issued, Cardno Limited would move ahead with its decision related to the acquisition of Raba Kistner, Inc. The press release which contained the information related to the acquisition also stated that Raba Kistner would be joining the construction sciences segment of Cardno which would support the Cardno in terms of the geographical presence. Cardno Limited plans to shell out US$55.0 million towards the acquisition of Raba Kistner which consist US$42.5 million amount to be paid on the upfront basis while the remaining amount i.e. US$12.5 million relates to the additional performance linked payments. The remaining amount which has been talked about happens to be due in the course of the three years. [optin-monster-shortcode id=”swikrbu1d9j9aq0o4cko”]

As per the press release issued, as far as financing of the acquisition by Cardno Limited is concerned, it consists its cash along with the present debt facilities. The top management of Cardno Limited stated positive views about the acquisition. According to them, the discussed acquisition is according to Cardno Limited’s growth plans. They also stated that the construction sciences happen to be the business which is gaining momentum with respect to the Australia region. They also added that this acquisition would support Cardno in terms of the growth moving forward. Talking about the management positions, it would be important to know that Mr. Neville Buch, who is the Director of Cardno Limited, would be on the Board of Cardno Limited along with the Raba Kistner’s Board seat.

Let us now have an understanding of the financial performance of Raba Kistner. The company has managed to generate net revenues amounting to US$58.5 million (normalized) while the company’s EBITDA or earnings before interest, tax, depreciation and amortization stood at US$7.1 million in the year which ended in September 2018. Talking about the effect of the acquisition on Cardno, there are expectations that the acquisition of Raba Kistner would make a contribution amounting to around US$3.8 million to the Cardno Limited’s EBITDA with respect to the results of FY 2019.

Recently, there was an announcement by the Cardno Limited focusing on the TGM Group Pty Limited’s acquisition with the help of press release. Cardno Limited also stated that the financing of this acquisition would be executed with the help of the financing facilities along with the cash.

Let us now quickly how Cardno Limited is performing today and how much it had given in the past few months. At the time of writing, the stock price of Cardno Limited is trading in green with the stock price of A$1.050 per share which implies the rise of A$0.025 per share or 2.439%. The market capitalization of Cardno Limited stood at circa $464.97 million. The stock has been delivering negative returns over the past few months. In the previous six and three months, Cardno Limited delivered the returns of -17.34% and -12.39%, respectively.


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