Viking Industries expands with two boat refitters

by Carin Pickworth on 10 May 2006 Marine industry service company Viking Industries has expanded with the $6 million acquisition of two boat refitters – the Gold Coast's Blackline Shipping and Brisbane's Marine Applications.

Viking Industries Ltd already has four subsidiary companies Brisbane Marine Industry Park, Furniture Manufacturing Company of Australia, Cairns Slipways and Australian Yacht Refits and Shipyard.

Viking managing director John Down said the acquisitions, expected to broaden the geographical reach of the public company's marine services division, were forecast to be earnings per share positive in the first full year of operation.

'With Blackline Shipping and Marine Applications we now have the capability to complete, in-house, all aspects of boat repair work and interior fitout on all forms of boats, and with a focus on the growing superyacht market in Australia,' Mr Down said.

'It also presents an integrated in-house capability to fully utilise the company's waterfront assets located in Cairns, Brisbane and now the Gold Coast.'

Mr Down said the acquisitions effectively completed the strategic development of the company, and complemented Viking's wholly owned fitout company Furniture Manufacturing Company of Australia.

The acquisition of Blackline Shipping was made up of $3.3 million in cash and $2 million in shares, escrowed for five years. It also included the acquisition of a large operational boat shed at the Gold Coast City Marina.

Marine Applications was acquired by Viking for $700,000, made up of $350,000 in cash and $350,000 in shares, again escrowed for five years.

Following a successful public offering of shares in April 2002, Viking Industries acquired the assets of Brisbane Marine Industry Park and has since pursued an ambitious development strategy aimed at providing world-class infrastructure to satisfy the requirements of an increasingly sophisticated market.