Ann: Pacific Energy to Acquire Contract Power Group, page-13

Agreed there looks to be a lot of synergies on offer with this deal, HQ & headcount consolidation and pooling of excess gensets should allow them to bid for new projects without all the additional capex. Also taking out a major competitor in Australia should lead to improved margins here while Contract's existing footprint in Africa should assist in expanding their business over there.

I'd assume they are very confident they have the capital raising covered if they haven't needed/bothered to troubled the underwriters.

The existing FY18 forecast EV/EBITDA for PEA was 5.3x compared with the forecast for the Contract business for FY19 of approx 6x probably means a small deterioration in valuation metrics, while the forecast that the transaction will be EPS accretive is not saying much given they are taking on $85m in additional debt! It would be nice to see some current financials for Contract, hopefully we will get some detail in the CR prospectus.