RDG Exits Units to Narrow Focus

australia

One of the leading mining services providers of the nation, Resource Development Group has been restructuring its business operations for efficiency. As the next step towards narrowing their focus, the energy giant has moved two of their subsidiaries to their management teams and associates.

Being an integrated group of companies offering a diverse range of services, RDG has been constantly improvising its structure to provide streamlined services to their clients.

Earlier this year, RDG split in business operations into the independent divisions where the Consulting division was given the ownership of the subsidiaries Ecologia Environment Pty Ltd, Engenium Pty ltd and intellect Systems Pty ltd and integrated all these subsidiaries in to a single brand named Engenium. This move was made after the acquisition of Central Systems Pty. Ltd (Centrals) last year. The acquisition shifted control to Mr Ellison and other prominent Centrals shareholders. The after sales operational and financial performance of Centrals has been noted to be excellent and they have proved their worth in a highly competitive environment.

Following the addition of the multi-disciplined construction contractor into the RDG umbrella, RDG has been making some measures to improve the effectiveness of their core business operations

By selling their smaller subsidiaries, they hope to narrow their focus on the operations of the Centrals and Engenium. The two subsidiaries that were chosen to be given away were the Ecologia Environmental Consultants and Intellect Systems that were previously part of the Engenium brand. It was not required to get approvals from the Australian Securities Exchange or the Australian Securities and Investments commission due to the small size of the businesses involved in the sale. The company size of both Ecologia and Intellect Systems were listed to be about 11-50 employees in their LinkedIn profile.

Both Ecologia and Intellect had been a part of RDG since 2011 when RDG was proclaimed as a vertically integrated service provider. They have come a long way ever since inception struggling through the onset of the mining downturn.

Founded in 1989 and headquartered at Western Australia, Ecologia Environmental Consultants is an Environmental Service industry that has been providing a wide range of environmental management services and biological science consultancy services for about 25 years. And now these services will be vested in the hands of specialized teams headed by Shaun Grein (Managing Director) and Jeff Brill (Director).

Intellect systems is a specialized service provider of end to end industrial technology solutions in Control systems and Automation, electrical engineering and an Industrial IT service provider for international and domestic resources, rail, utilities and manufacturing sector. Founded in 2005, Intellect systems comprise a highly skilled and experienced team known for their customized and specialized service delivery.

This strategic move will now enable RDG to focus on its core services such as construction, plant modification, shutdown and maintenance services. RDG will also be able to widen its investment scope and look into new opportunities.

The new owners of Ecologia and Intellect also sound optimistic and are set to expand their reach in the market.