Hastie buys two regional businesses

Building services provider Hastie Group Ltd says it has expanded its coverage of the northern Queensland and northern NSW markets with two acquisitions.

Hastie said in a statement on Thursday that the acquisitions brought combined revenue of approximately $35 million, employing more than 100 service technicians.

The acquisitions are James + More, which provides multi-trade air conditioning and electrical maintenance services from offices in Cairns and Townsville, and Cool-it, based in Tweed Heads, in far northern NSW.

Cool-it services and installs air conditioning equipment for the commercial and residential markets from Coffs Harbour, on the NSW mid-north coast, to Yeppoon, on Queensland's central coast.

Hastie said the combined initial cash purchase price represented an average earnings before interest and tax (EBIT) multiple of 2.8, with the opportunity for further performance-based earn-out payments over two years.

"These two acquisitions are in line with Hastie's strategy to increase recurring maintenance revenue and expand our geographic coverage," said Hastie Group Managing Director and chief executive officer, David Harris.

"Both businesses are leaders in their markets, with strong growth expected over the coming years," Mr Harris said.