The Jeminex Group, a leading Australian provider of industrial components to the resources sector, today announced the acquisition of work wear clothing supply business Worksense for an undisclosed sum.
Worksense generated revenues of around $18 million in the year to 30 June 2007, with the revenues growing at around 28% per annum over the past few years.
Worksense specialises in the retail and wholesale supply of high quality workwear, safety and corporate clothing including fire resistant and wet weather gear, coveralls, trousers, vests and accessories.
The business sources the majority of its product from Jeminex-owned Noble Agencies, and a range of other suppliers such as Steel Blue, Mack Footwear, City Collection and Style Corp and disseminates its product via an extensive distribution network throughout Australia and New Zealand.
Customers of Worksense include Woodside Petroleum, The Downer Engineering Power Group, Monadelphous and Pilbara Iron Company Services (Rio Tinto), with the top ten customers of Worksense accounting for 28.68% of total sales.
Worksense has enjoyed significant growth during the current year, with the majority of the growth stemming from the business’ strong presence in the mining boom fuelled state of Western Australia.
The business’ substantial growth over the period is also attributed to a considerable increase in revenues through its Rockingham and Darwin outlets.
Over the past two years the business has significantly increased sales of Worksense branded product, thereby enhancing margins and quality control.
Jeminex Chief Executive Officer, Mark Allison, said that Worksense is a well-managed, profitable business and its attraction is based on the synergies it brings to the overall Group.
“The business provides a complimentary fit within our Group’s personal safety and industrial workwear platform and opportunities exist to drive further synergy benefits,” Mr Allison said.
“Worksense will add considerable value to the overall Jeminex proposition as we continue to expand and penetrate the industrial consumables and mining services sectors throughout Australia.”
“We are well on track to building a diversified industrial group and bringing the company to market in 2008.”
“We look forward to welcoming Worksense and its employees, suppliers and customers to the Jeminex Group,” Mr Allison said.
General Manager John Lohman will retain his position for a six month period to ensure a smooth transition and will subsequently take on a non-executive role. Amanda Lohman will remain as the manager of Worksense’s Northern Territory operations.
Worksense takes the number of acquisitions made by the Jeminex Group in 2007 to nine, with the group’s portfolio now spanning all parts of the industrial consumable value chain in the main resources centres in Australia.
The acquirement of Worksense follows the Jeminex Group’s recent acquisition of the Addrill Group and the appointment of Mark Luby as a Non-Executive Director to the Jeminex Board.
With the acquisitions of the Addrill Group and Worksense, the Jeminex Group now generates annual revenues of around $265 million.