10 questions with the former apprentice… www.engineeringnews.co.nz 7 …who bought the company… 1. What was it like coming back to the company where you were an apprentice? Being able to come back to the company as the owner was very satisfying. Ultimately, though, this was a business opportunity which just happened to be with Stevenson Engineering Limited (SEL). 2. How healthy is the heavy engineering sector in New Zealand? There’s a lot going on in the sector, and it remains a very competitive market with lean margins. There are, however, economies of scale and in that light, the acquisition of SEL presents further opportunities for growth. The consolidation of premises, including IMG’s exit from our Wiri workshop, with its high overhead, gave us rent to equity ratio that was sound. 3. How did this acquisition come about? Through general industry discussion, SEL and IMG discovered that we had individual strategies and goals which had enough common areas to broker a beneficial agreement. 4. What does the future hold for IMG? We intend to be the foremost heavy industrial company in New Zealand in the maintenance and project space. IMG has earned a reputation for the quality of our work and innovation in the delivery of our maintenance services to the steel and heavy engineering sectors, and associated primary industries like pulp and paper and energy generation. We have already diversified into the forestry industry, and the acquisition of SEL now gives us a presence in the mining and aggregates sector. 5. Were there any old familiar faces at SEL? Yes, there are, which is a testament to the family and business ethos which Stevenson Engineering and IMG have in common. We remain a privately-owned family business, and we’re growing rapidly because our philosophy is relationship based in the way that we treat our clients and our staff. 6. Why are you diversifying (growing) the business? The IMG Group wants to establish a greater presence in key areas of the heavy engineering sector, including hydraulic engineering, mechanical maintenance servicing, earthmoving and heavy plant expertise. 7. Does the acquisition add any new strings to your bow? Yes, we saw this acquisition as an opportunity to expand our ability to offer a significant, but independent, heavy engineering service to companies that need help maintaining their earthmoving and excavation fleets. It’s a service that complements our fabrication and welding services. 8. As a result of the acquisition, what additional benefits will you be able to offer customers? We see our customers benefiting from a consolidated, diverse and expanded range of services, based on the combined knowledge and expertise of two key industry organisations. This builds on IMG’s ability to offer the mining, aggregate, forestry and steel sectors optimum levels of knowledge along with excellent service delivery. 9. How much bigger does this make IMG? There’s an immediate growth of approximately 30%. 10. How has the news been received by customers? Our customers and potential customers are happy that a truly independent, expert and wellresourced supplier is available to meet their general and specialist needs and expectations. They have every confidence in us. than 30% almost overnight – and will require some integration – but the company expects minimal disruption. “Rather than shedding jobs, we’re actually in hiring mode for people with the right skills because this acquisition makes us a significant player in New Zealand’s engineering services space – having already quadrupled in size since 2008,” he says. “While the former Stevenson Engineering was there primarily to service its parent mining company, IMG is a fully independent operation that is now in a position to offer all companies in the mining, forestry, steel and aggregates sectors the best of Stevenson’s engineering expertise and experience, without actually being Stevenson. “The acquisition also expands on our ability to offer a significant, but independent heavy engineering service to companies that need help maintaining their earthmoving and excavation fleets. It’s a service that complements our fabrication and welding services,” Mr Bonner says. The coming together of two Kiwi success stories is a win:win for both IMG and Stevenson Group because it enables both organisations to future-proof their operations, shed unnecessary costs and focus on growth. “This is about securing jobs and building a bright future for our company and our staff by offering the market a truly independent, expert and well-resourced alternative,” Mr Bonner adds. N E W S
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