Australian company Transfield Services continued its expansion in North Island roading construction with the purchase of McBreen Jenkins Construction for $24.2 million.
The acquisition included McBreen Jenkins' water infrastructure subsidiary, Impact Services.
Transfield has spent $47 million in the past year in expanding its roading business. Annualised revenue from the businesses would be about $118 million, Transfield NZ chief executive Graeme Sumner said.
McBreen Jenkins' business covered roading maintenance, quarrying, civil construction and water utilities maintenance.
Impact Services provided water and wastewater services and car ferry services on Hokianga Harbour to the Far North District Council. The two companies employ about 470 staff.
The purchase, subject to regulatory approvals from the Overseas Investment Office, was 7.7 times the company's past earnings before interest, tax and amortisation.