Ashley Services (ASX:ASH) makes a move into the oil & gas sector

Ashley Services (ASX:ASH) is set to purchase a 75 per cent stake in Linc Personnel, a West Australian company that provides labour hire and recruitment services within the oil and gas industry.

The acquisition will cost $3.6 million, to be funded from cash reserves and a newly extended bank facility with Westpac of $35 million, up from $16.5 million.

“The acquisition of Linc is a logical expansion opportunity for Ashley, broadening both our geographical footprint and also our industry sector coverage,” said managing director Ross Shrimpton.

“The oil and gas sector is poised for further growth in the coming years and we are delighted to have entered the sector through our strategic acquisition of Linc, which will continue to be run on a day to day business by its founder and continuing 25 per cent shareholder, Ian Cantley.”

The company expects the acquisition to be completed during the first quarter of FY23, following completion of due diligence and purchaser conditions.

It also anticipates the acquisition to be earnings per share accretive in FY23.

Shares in Ashley Services (ASX:ASH) are trading 6.7 per cent higher at 72 cents.