Verbrec Limited has agreed to sell its Competency Training business to RelyOn Australia for $11.5 million in cash, aiming to sharpen its focus on core engineering services and accelerate growth in energy transition and automation.
- Sale of Competency Training for $11.5 million cash
- Transaction subject to Foreign Investment Review Board approval
- Proceeds to strengthen Verbrec’s balance sheet and fund growth
- Focus shift towards energy transition and automation sectors
- Competency Training staff and assets to transfer to RelyOn
Strategic Divestment to Refocus Core Business
Verbrec Limited (ASX:VBC) has announced a significant divestment, signing an agreement to sell 100% of its Competency Training subsidiary to RelyOn Australia Pty Ltd for an upfront cash consideration of $11.5 million. This move marks a strategic pivot for Verbrec, enabling the company to streamline its operations and concentrate on its core engineering, asset management, and operations and maintenance services.
The sale includes the transfer of all Competency Training staff, facilities, and equipment to RelyOn, a global leader in safety and technical training services. Verbrec’s CEO, Mark Read, expressed confidence that the Competency Training team will thrive under RelyOn’s ownership, highlighting the business’s strong reputation built over years.
Financial Strengthening and Growth Prospects
The $11.5 million cash inflow will bolster Verbrec’s balance sheet, providing the company with enhanced financial flexibility. This strengthened position is expected to support both organic growth initiatives and targeted bolt-on acquisitions, particularly in areas aligned with the energy transition and automation sectors; markets that are increasingly critical to Australia’s industrial future.
Verbrec acquired Competency Training in 2008, prior to its ASX listing, and the training business has since offered accredited courses primarily focused on hazardous areas and high voltage competencies. However, the divestment signals a deliberate shift to sharpen Verbrec’s focus on its engineering and asset lifecycle services, which are central to its long-term strategy.
Conditions and Next Steps
The transaction is subject to customary conditions precedent, including approval by the Foreign Investment Review Board (FIRB), and adjustments for working capital and net debt at completion. A transitional services agreement will support a smooth handover over an initial three-month period post-completion.
Investors can expect a detailed presentation on the transaction in the coming weeks, which will likely shed more light on how Verbrec plans to deploy the proceeds and pursue growth opportunities. The company’s renewed focus on energy transition and automation aligns with broader industry trends and government priorities, positioning Verbrec to capitalize on emerging demand.
Bottom Line?
Verbrec’s divestment of Competency Training sets the stage for a sharper strategic focus and growth in high-potential sectors.
Questions in the middle?
- How quickly will Verbrec deploy the sale proceeds into acquisitions or organic growth?
- What specific energy transition and automation capabilities will Verbrec target next?
- How will the FIRB approval process impact the transaction timeline?