Infrawork sold to ASX-listed PeopleIN in $56m immigration labour deal

Infrawork is New Zealand's largest provider of skilled migrant contract labour and immigration services to the infrastructure and industrial sectors. Photo / Jason Oxenham

New Zealand immigration and skilled contract labour group Infrawork has been sold to an Australian recruitment company.

The deal for $56 million will see ASX-listed PeopleIN acquire 100% of the shares in Infrawork, which comprises Extrastaff, a skilled labour contract business, Visahub, an immigration service, and Sky Bourne International, a Manila-based employment agency with Overseas Employment Administration accreditation.

The transaction is comprised of an upfront cash consideration of $24m, with an additional contingent consideration of up to $32m payable over three years, subject to performance-based earn-out targets.

Infrawork chief executive Oscar Dunn said the deal reflected the scale, quality and capability of the business.

“Over the last 15 years, Infrawork has been built into New Zealand’s largest immigration and skilled labour group, supporting critical infrastructure delivery across the country,” Dunn said.

“This transaction recognises the value created through that growth.”

Dunn said the deal marked the beginning of Infrawork’s next phase of growth and was exciting news for its team and customers.

Day-to-day operations for Infrawork’s team will continue unchanged, with Dunn set to continue leading as chief executive.

“While day-to-day operations remain unchanged, PeopleIN’s capital, capability and scale will help us execute faster, strengthen the business and deliver more for customers over time, including through a stronger transtasman network.”

PeopleIN chief executive Tom Reardon said the expansion enhanced the company’s footprint as the largest employer of Pacific workers in Australia.

“With Infrawork’s proven history of staff mobilisation since 2011 from Asia Pacific, and PeopleIN’s successful Palm initiative in Australia, we are positioned to leverage the transtasman agreement for cross-border operations and utilising the skilled workers into each geography.”

The transaction was led by AK Christie & Co, with advisory services provided by Russell McVeagh and BDO.

Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.

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