Gamuda completes Downer EDI acquisition
Malaysian infrastructure company Gamuda’s continued expansion in Australia has reached another milestone with the completed purchase of Downer EDI’s Australian transport projects business.
DT Infrastructure (DTI) will operate standalone within the Gamuda group of companies, alongside Gamuda Engineering (GEA) in the Australian market.
The acquisition will complement the growth and success of Gamuda Australia, which secured three major project wins in 2022 with revenue of more than AUD$3.3 billion, including the Sydney Metro West-Western Tunnelling Package, Coffs Harbour Bypass and M1 Raymond Terrace extension. Delivery of these projects are on schedule.
More than 1100 staff and a forecast work in hand of approximately $2b are transferring to DTI as part of the AUD$212 million sale.
The significant addition of people and capabilities will provide a unique offering by the Gamuda group of companies in the Australian contracting market. The combination of global expertise with local experience will be underpinned by engineering innovation, collaborative contracting and leading sustainability practices.
DTI’s established rail capability will be enhanced by Gamuda’s Asia-Pacific expertise, which has delivered turnkey metro rail projects including the Klang Valley Mass Rapid Transit lines (KVMRT).
Over the past 12 years, Gamuda has constructed two end-to-end KVMRT lines, including over 100 kilometres of metro rail track and 65 new stations in Kuala Lumpur.
DTI will be led by experienced infrastructure executive Mark Mackay, supported by his existing senior team.
“Our team has built a strong reputation delivering complex infrastructure for clients over the last decade,” he said.
“Continuing as a leading delivery partner in complex infrastructure is the focus for the business. Our vision as DTI is to create reliable, safe and sustainable solutions that unlock opportunities for our people and customers.
“We are working closely with our clients, partners and suppliers to ensure continuity for projects under delivery. Gamuda’s global strength unlocks a wider range of projects for the business to pursue into the future.
“This is an exciting time for DT Infrastructure. Our team is moving forward with certainty and optimism.”
Gamuda Engineering executive director in Australia, Ewan Yee, said the synergies between the two companies will provide a unique offering for clients.
“The addition of further rail and transport capability in Australia helps unlock Gamuda’s international experience and innovation as a turnkey infrastructure provider,” he said.
“There’s a strong alignment between the businesses in terms of culture and values. Maintaining our approach to collaborative contracting, striving for engineering innovation and putting sustainability at the heart of project delivery will produce great outcomes for our customers and local communities.
“Gamuda has ambition to grow the volume and types of projects we deliver in Australia. This strategic purchase accelerates our growth plans and improves our competitiveness across a wider range of transport and infrastructure work.”
Whilst the parties have satisfied the majority of the sale conditions, there remains one customer consent outstanding at the time of completion. These contracts will remain with Downer until the consents are received, which is expected by July 31.