Switchrooms

Paragon acquires gas and

mining sector constructor

Paragon Private Equity has announced the acquisition last year of Perth-based liquid natural gas (LNG) and mining sector construction company Lowrie Constructions. Lowrie builds transportable electrical switch room buildings used for distribution of high and low voltage power around mine sites, LNG plants and major infrastructure projects. The buildings are fire rated, cyclone rated, air conditioned, and customised to protect high end electrical power equipment. The company provides a full design and construction service for the buildings which can be delivered via road transport or barge anywhere in Australia. Lowrie also constructs other specialised transportable buildings such as communications facilities. The company is a leader in electrical switch room construction in Western Australia and provides buildings for ultimate users such as BHP, Rio Tinto and Chevron Australia, which is developing the massive Gorgon natural gas project about 130 kilometres off the north-west coast of Western Australia.

The former owner, Terry Wilson, remains on the board of Lowrie. Two Paragon nominees have joined the board: Paragon managing director Geoff Thomas and Tim Lebbon. Dalton Gooding, principal of the Perth based accounting firm, Gooding Pervan, has also joined the board. Geoff Thomas said: “We’re delighted to be able to acquire Lowrie. We believe the company holds an excellent position in the Western Australian market. Since acquisition in October, we have already expanded production facilities by about 30 per cent to help meet increased demand.”

This is the seventh investment for the Paragon fund, and the second in mining infrastructure. The first was a significant minority stake in Cowell Electric in 2007. Cowell is a South Australia-based based company which primarily constructs power lines from the electricity grid to mine sites, and from renewable energy facilities, such as wind farms and geothermal plants, to the grid.

South Australia government-backed Paragon makes buyout and expansion capital investments in the $5 million to $15 million enterprise value range, preferably in businesses with potential to boost business activity in South Australia. Typically, these investments involve transition of owner-managed family businesses to corporate structures or growth strategies.