Downer has sold its transport projects division to a Malaysian engineering and infrastructure giant which has flagged a growth plan in Australia of $3 billion annually by 2026.
Gamuda Berhad’s newly acquired division will trade as DT Infrastructure (DTI) in Australia and work as a standalone business alongside stable mates Gamuda Australia and Gamuda Engineering.
As part of the $212 million purchase, the transfer of more than 1100 staff and forecast work already on the books worth $2 billion are included. Sydney Metro-Western Tunnelling Package; Coffs Harbour Bypass; and M1 Raymond Terrace Extension are among these projects.
The sale is part of the Downer Group’s “portfolio simplification strategy” which came in the wake of the Downer Group’s appointment of Peter Tompkins as new CEO from February this year. New CFO, Malcolm Ashcroft, was announced in March and starts next month.
“This acquisition … represents our commitment to strategic growth and expansion in the infrastructure and transport sector in Australia,” Gamuda told Malaysian media, The Star.
[And] … is in line with Gamuda’s growth plan of achieving $3billion in revenue annually in Australia within the next two to three years.”
DTI is being touted as a unique offering in Australia’s contracting market that will also benefit from Gamuda’s well established expertise in rail capability.
In addition to growing its portfolio in Australia and operating on home ground in Malaysia, Gamuda operates in the United Kingdom, India, Taiwan, Singapore, Bahrain, Vietnam and Qatar.