Newcastle-based Forgacs today announced it has acquired Broens, a precision engineering company that operates in Australia
13th Aug 2014
FORGACS ACQUIRES BROENS; COMBINATION TO PROVIDE ENHANCED CAPABILITY AND A STRONG PLATFORM FOR GROWTH
� Forgacs/Broens collaboration will integrate the strengths of both companies
� Creates diversification and greater opportunities for both companies
� Maintains and builds capability for Australia’s defence industry
Newcastle-based Forgacs today announced it has acquired Broens, a precision engineering company that operates in Australia and overseas across a significant number of markets.
In addition to providing significant collaboration and greater opportunities, the acquisition will maintain and build capability for the NSW and SA defence industries.
Speaking about the initiative, Forgacs chief executive Mr Lindsay Stratton said, ‘The acquisition is the first step in our diversification strategy and creates a unique and very marketable mix of capabilities’.
Forgacs has traditionally focused on heavy engineering and shipbuilding but Broens’ strength is in high-tech precision engineering and aerospace; by bringing the two organisations together customers will be able to access high value solutions that draw on the spread of capabilities on offer from Forgacs and Broens.
Mr Stratton contends that, ‘In addition to creating diversification and greater opportunities the acquisition will facilitate the extension of Forgacs’ defence offering to include land and air’.
‘We are widely recognised for our maritime offering through naval shipbuilding and our through life support operations. Now we will also be involved with the land and air aspects of defence. This is an exciting and undoubtedly challenging opportunity but we are very much looking forward to making it work.’
The partnership will also see both companies benefit from access to a wide range of customers, and new market sectors both in Australia and overseas.
In the increasingly competitive and demanding defence sector the acquisition of Broens ensures the company’s future and the ongoing employment of many highly specialised employees.
The sustainability and future success of the combined organisations will add to the capability and strength of Australia’s defence industry.
‘Forgacs’ defence work has clearly laid solid foundations for us in this area and the addition of
Broens will give us added momentum in this critical industry’, Mr Stratton concluded.
Forgacs is Australia’s largest privately-owned engineering and shipbuilding company, servicing the country’s Defence, Mining, Infrastructure and Energy sectors. It has been in business for more
than 50 years and currently has a workforce of approximately 900 employees – the majority being high skilled tradesmen.
It is headquartered in Newcastle, and operates five sites in New South Wales and Queensland. The company’s shipbuilding business is part of the team building the $8 billion Hobart Class Air
Warfare Destroyers (AWD) for the Royal Australian Navy and is manufacturing 37 of 93 AWD hull blocks.
Forgacs heavy engineering business at Hexham in Newcastle focuses on the build and refurbishment of mining, rail, utilities, infrastructure and industrial equipment, with fully equipped medium to heavy engineering, machining and fabrication, and breakdown facilities for some of the world’s leading OEMs.
Broens is an innovative engineering solutions provider supplying precision engineered products and services to both Australian and international companies in Defence, Aerospace, Mining, Oil and Gas, and other sectors.
It was established in 1979 and operates sites at Ingleburn in New South Wales and at Elizabeth in South Australia. It currently employs approximately 100 people – of which most are highly-skilled tradesmen.
Broen’s is engaged in the Joint Strike Fighter global supply chain and is supplying specialised tooling to major joint strike fighter contractors. This involvement in the F-35 project should result in the company being part of the future defence hub solution in Williamtown where the Joint Strike Fighters will be based and maintained.
Broens superior product knowledge and process expertise enables it to design and manufacture to customers’ exacting specifications. This combined with state-of-the-art equipment allows the company to provide a full turnkey service from design through to final manufacture, commissioning and through life support.