Taggart has a respectable order book of $465 million with a strong pipeline of new tendering opportunities. Around $400 million of which is made up of longer term asset management recurring revenue. The business is expected to contribute $350 million of revenue to Forge Group in FY2014. Upon completion of the transaction, the combined Forge Group order book will be A$1.4 billion ($1.3 billion) and the company will have close to 2,000 employees, with more than 400 based in the United States.
“Taggart is a highly complementary business for Forge Group; it has an excellent reputation in the U.S. coal and clean coal technology markets, and we are committed to growing the business in the United States and globally,” said David Simpson, managing director, Forge Group. “We have been working with the Taggart team for some time on this transaction and we are delighted that the existing Taggart team will remain in place to drive the business’ growth. Through Forge Group’s expanding global presence, Taggart will have multiple growth channels. It is our intention to build on the team and capitalize on a recovering U.S. economy.”
Forge Group services some of the world’s leading resources, energy and utilities sector clients including BHP Billiton, Rio Tinto, Peabody Energy, ArcelorMittal, Chevron, MCC and AngloGold Ashanti.