- The acquisition is an ideal opportunity for EGL as it allows the firm to move further with its strategy of becoming a national player.
- Under the terms of the acquisition agreement, the current RCR management team would be retained by EGL.
RCR Energy Service (RCR), an Australian diversified engineering & infrastructure company, has reportedly announced that it has signed an agreement with The Energy Group Limited (EGL) for the sale of the company’s assets.
Reports cite, EGL anticipates that the RCR Energy Service acquisition would be completed in the first half of January 2019. Under the terms of the agreement, the current RCR management team would be retained by EGL.
According to a press release by RCR Energy Service, the sale of the company assets to EGL follows a previous sale of the RCR O’Donnell Griffin’s Rail to Melbourne-based construction, rail, tunneling, building & services provider, John Holland Group. Meanwhile, the company is also working along with several other parties who are interested in acquiring the remaining of RCR’s businesses.
The RCR acquisition is reportedly an ideal opportunity for EGL as it further propagates the company’s strategy to become a national player as it works towards developing an environmental business to cut-down on carbon emissions, enhance air quality, improve water quality and waste-to-energy production.
EGL released a statement that said, RCR acquisition is an essential link in the company’s strategy to construct a waste/bio-to-energy platform as a portion of the technology being acquired allows a combination of waste & gasses to be utilized to generate steam or electrical power. Moreover, the procurement also presents an opportunity to leverage the company’s current suite of products to customers of RCR and also to develop enhanced engineering capabilities & knowledge-base.
According to reports, the financial terms of the acquisition would not be unveiled publicly until the end of the month.