There’s succession planning in the air at Hunter-based project management and labour and equipment hire group Farrelly Construction Services, which is expected to be shopped to potential trade and private equity buyers in coming months.
It is understood FCS, founded by Darren Farrelly to service the mining and construction industries in 2009, has called in advisers to pitch for the sale mandate, and told them it wants to get cracking on a process this year.
Farrelly Construction Services makes about $10 million in earnings a year, from about $100 million in revenue.FCS is understood to be making about $100 million a year in revenue and $10 million at the EBITDA line. The group provides design and engineering, project management and supervision and plant/equipment and labour hire, taking projects from earthworks to build.
Word’s starting to spread in the industry about the potential sale. Sources reckon it would be ripe for Wes Maas’ Maas Group, which has emerged as the regional NSW industry consolidator with the capital and stomach to mop up smaller players. Maas Group shares trade at 12-times trailing EBITDA , and typically pays mid single digit multiples for its targets.
In a statement to Street Talk, FCS chief financial officer Jason Levey, responding on behalf of MD Farrelly and the company, said: “We are a small but successful family-owned business and get unsolicited approaches from time to time and we do seek the advice of many professional advisers over the course of doing business”.FCS is wholly owned and overseen by Darren Farrelly, according to filings with the corporate regulator. The group reported $50.4 million revenue and a $1.
co-edits Street Talk, specialising in private equity, investment banking, M&A and equity capital markets. He has 10 years' experience as a business journalist and worked at PwC, auditing and advising financial services companies.
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