Buyout of truss firm

A GEELONG timber truss and framing manufacturer with sales of more than $10 million a year is being sold to a national company.

The ASX-listed Big River Industries Ltd has agreed to acquire the assets and trading business of 41-year-old Breakwater company MB Prefab Framing Pty Ltd.

In a statement to the ASX, Big River Industries, which makes and distributes timber and building products, said it expected to further diversify and grow the Geelong business.

“While the existing MB Prefab business was focused on residential markets for the supply of prefabricated timber wall frames and roof trusses, it provided a platform to leverage Big River’s position in the commercial and multi-residential segments to further diversify the acquired business over time,” the company said.

“Hence this local Geelong presence will offer enhanced service and product range for existing Big River clients, while bringing a whole new range of customers and products into the Big River group.”

One of the MB Prefab founders, Doug Maxwell, will remain with the business in an operational role.

All staff will be retained as part of the transition into the Big River group.

“The investment is earnings per share accretive and will include a mixture of cash and an earn-out component to help align the interests of the vendors and Big River,” the statement to the ASX said.

Big River chief executive Jim Bindon said MB Prefab was a well regarded business that would become an important part of the Big River network.

“The site is very well equipped to supply the broader range of products marketed by Big River into all construction segments of the Geelong and broader Melbourne markets,” Mr Bindon said.

Big River is an integrated timber products business whose operations range from procurement of raw materials through to sale of finished products to end users.