South Australian mining, engineering and construction business E&A Limited (EAL) has acquired WA-based electrical contracting business Tasman Power for $12 million.

The acquisition is a further diversification of EAL which generates most of its revenue through the provision of engineering services and manufactured components.

The company has been on the search for “good value acquisition targets”.

“Tasman Power represents an outstanding opportunity for EAL to acquire a well-established electrical contracting business, while also providing a foundation for further expansion into related market segments and additional geographic regions,” the company said in a statement Monday.

Tasman Power is a Western Australian-based business which specialises in providing complete electrical and instrumentation installation solutions.

It generates revenue from shut-down maintenance, programmed maintenance and upgrades to existing sites and green-field projects.

The business services and operations are within the existing expertise of the E&A Group, EAL’s executive chairman Stephen Young said.

“The acquisition of Tasman Power provides the opportunity for EAL to further expand its geographic footprint in Western Australia through the acquisition of a quality business, with a proven management team and a blue-chip customer base,” Young said.

“EAL considers that Tasman Power’s key assets are its management team, its ‘safety first’ culture and its excellent safety record.”

Tasman’s managing director Jason Pryde has agreed to continue in his role.

The acquisition will be financed through a combination of the issue of 4,128,120 EAL shares to the vendors, cash and bank debt.