Aerison Group to be sold to competitor Pacific Industrial Company amid Roy Hill contract dispute

Aerison Group is expected to be sold to a privately-owned competitor following a heated two-way contest for the troubled engineering and construction provider. The West Australian understands Perth-based Pacific Industrial Company is the proposed buyer for Aerison, which collapsed in June after failing to resolve a $47.5 million contract dispute with Gina Rinehart’s Roy Hill. A report from KordaMentha administrators is expected to be put to creditors late tonight ahead of a vote scheduled for next Thursday. PIC provides steel design, fabrication and construction services to Australia’s commercial, infrastructure and resources sectors, with workshop facilities at Perth’s Naval Base. It is understood the well-capitalised business will take on almost all of Aerison’s workforce, comprising around 250 employees across seven businesses, and was attracted to the company for its work in dust management. PIC was previously awarded the structural steel contract for the WA Museum Boola Bardip and has completed work for Tianqi Lithium Australia, BHP and construction firm Cooper & Oxley. The family-owned business was founded in 1969 by Italian immigrant Erasmo Mosole, who remains a director of the company. It is believed PIC only emerged as the frontrunner for Aerison on Thursday morning after facing stiff competition from another party and over 25 expressions of interest in total. Aerison will continue to service its current clients including Rio Tinto, Chevron and Northern Star Resources. KordaMentha is expected to continue to take carriage of the Roy Hill claim and any potential litigation, however it will likely be pursued outside of the new ownership. It relates to the construction of a saline water reverse osmosis desalination plant, which triggered a liquidity crunch and has been blamed as a key reason for Aerison’s collapse along with rising costs and supply chain problems. Administrators in June said they were appealing to Roy Hill to settle the bill, warning delays would hurt employees and other stakeholders. Roy Hill has previously said its relationship with Aerison had included “many years of successful service delivery and project outcomes”. Aerison’s shares have been suspended since May 4. The market operator last week said Aerison was among a handful of companies who had failed to pay the ASX its listing fee for the current financial year.