Family Business Rescue – McMahon buys Asurco & preserves future of SA construction

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04/06/2020
In a remarkable strategic move, a long-standing reputable SA brand is secured in a family business rescue. Stunning specialist SA construction skills honed over 50 years are now “preserved” for the future along with 36 jobs after McMahon Services bought a struggling local business.
Family business rescue turnaround restructuring safe harbour Eddie Griffith

Photo includes Asurco founder Des Pawelski with McMahon Services general manager Andrew McMahon at Asurco’s Royal Park cladding facility.

McMahon Services has bought local concrete and cladding products specialist Asurco Contracting for an undisclosed price. The deal will see McMahon Services taking over the existing contracts of Asurco and its 36 staff.

Photo includes Asurco founder Des Pawelski with McMahon Services general manager Andrew McMahon at Asurco’s Royal Park cladding facility.

“The result will be that the brand, specialist services and expertise of Asurco will live on as a division of McMahon Services called Asurco Roofing and Cladding,” a statement from McMahon said.

Royal Park-based Asurco was founded by Des Pawelski back in 1969 and offered a broad range of cladding products and services to clients across Australia and South-East Asia. Des Pawelski utilised recently introduced legislation ‘safe harbour’ to continue trading whilst he sought the most ideal buyer for the long-standing reputable Asurco business. This enabled a remarkable family business rescue, despite being amidst the COVID crisis. 

Asurco had faced the “very real prospect of permanent closure” after a challenging 12-month period significantly worsened by the onset of COVID-19. Aided by a team Adelaide’s top business advisory professionals, Des battled through the COVID crisis and by doing so was able to find the best outcome for the Asurco business and it’s stakeholders. Des succeeded in securing his reputable SA brand for years to come and has set the business on the trajectory for sustainable growth. McMahon Services managing director David McMahon said the acquisition of Asurco is terrific news for SA and the construction & development sector.

McMahons risk appetite merger acquisition family business rescue

McMahons are adept at sustainable growth, risk strategy and management. It is ingrained into the company culture at all levels.

“We have a longstanding relationship with Asurco and are delighted that its market-leading products, as well as specialist expertise garnered over more than 50 years, will be preserved as a division of McMahon Services,” Mr McMahon said.

“We have offered roofing services for many years, and with the added expertise acquired through Asurco in construction cladding, we see significant commercial opportunity for the combined business.”

In addition to standard cladding products, Asurco specialises in glass reinforced concrete cladding products, which are produced through a process of blending glass fibres into cement. It is a rustproof product that can be moulded into thin, but exceptionally strong panels of all shapes and sizes. Asurco is also the only SA manufacturer of toilet and shower partitions for all kinds of commercial and public buildings using laminates, fibre cement and polymer plastics.

“We were attracted to Asurco due to its reputation in the market and more particularly as it is a true South Australian manufacturing business, something we see as important to preserve for the future of the South Australian construction industry and the state in general,” Mr McMahon said.

Asurco founder Des Pawelski will remain with Asurco as part of McMahon Services.

“This is the best possible outcome for Asurco and our clients across Australia and SE Asia are very happy that our products and services will remain accessible,” Mr Pawelski said.

Dry Creek-based McMahon Services employs more than 750 staff across its headquarters here and offices in Queensland, WA, NSW, Victoria, the Northern Territory and NZ. Its range of services includes building, engineering and civil construction to demolition, environmental remediation, transport, quarrying and mining services.

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