The deal, which values Geotech at AU$262m (£163m), is designed to accelerate Acciona's expansion in a market that it sees as having great potential for infrastructure development.
Acciona said that Geotech brings a track record, backlog of work and know-how in mid-sized projects in Australia, a strongly established local footprint and technical capabilities that have made it a highly-valued subcontractor in large projects, particularly railway works.
The deal includes a cash payment of US$197m. In addition, three key Geotech executives will receive a 17.6% stake in a new subsidiary, Acciona Geotech Holding. The new company will integrate Geotech and Acciona’s future pipeline of construction projects in Australia. Acciona Construction will control 82.4% of the new subsidiary.
The deal seeks to build upon Acciona Construction and Geotech’s complementary businesses, and to create a platform for growth that can respond to the sizeable demand for infrastructure in the Australian market, estimated at AU$125bn over the next decade.
The two companies dovetail geographically: Acciona Construction's footprint in Australia is concentrated in Queensland and New South Wales, while Geotech is strongest in Victoria, although it operates nationwide. The new company will be based in Melbourne.