North American Construction (NYSE:NOA) +3.2% post-market Wednesday after agreeing to acquire Australian heavy construction equipment company MacKellar Group for ~$395M.
North American Construction (NOA) said the deal emerged after two years of dialogue with MacKellar following the entry into Australia through the acquisition of DGI Trading Ltd. in 2021.
The combined company is expected to have more than $4B in contractual backlog by December 31.
Combined with McKellar, North American Construction (NOA) forecasts FY 2023 combined revenue of $1.15B-$1.25B, adjusted EBITDA of $275M-$305M, and adjusted EPS of $2.60-$2.80.
For FY 2024, the company sees the incremental impact to combined revenue of $450M-$500M, adjusted EBITDA of $130M-$160M, and adjusted EPS of $1.10-$1.40.
The company also reported Q2 adjusted earnings of $0.47/share on revenues of $193M.
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