ISOTeam to buy Coney International's six construction firms for $24m

The purchase consideration will comprise 50% cash and 50% ISOTeam shares.

Building maintenance and estate upgrade firm ISOTeam has entered into a conditional sale and purchase agreement with Coney International for six companies known as “Pure Group” for $24m.

The Conditional SPA covers Coney International’s entire equity interest in Pure Group, which comprises Pure Group in Singapore (100%-owned), Pure Projects in the Philippines (99.9%-owned), Pure Projects Construction Advisory Shanghai in China (100%-owned), Pure Projects Management in Malaysia (100%-owned), Pure Projects SEA (100%- owned), and Pure Projects SEA in Thailand (49%-owned).

The purchase consideration of $24m was calculated based on six times the average earnings before interest and taxes (“EBIT”) of the target companies for the period from 1 July 2016 to 31 March 2019 of approximately $4m.

ISOTeam said that the newly integrated company Pure Project Group is estimated to achieve a minimum profit after tax target of $3m for FY2020 and $5m for FY2021.