HRL Holdings, the ASX-listed geothermal exploration company, has agreed to buy Precise Consulting, a hazardous material testing laboratory, for $5 million plus any earnout considerations.

The Queensland-based company will pay up to an earnout consideration of up to $2.5 million for the Christchurch-based lab services company, if it delivers more than $2.5 million in earnings before interest and tax in the year ended Dec. 31, 2015, HRL said in a statement to the ASX. The sale is dependent on ASX and Australian Securities and Investment Commission, shareholder approval and HRL gaining finance to fund the acquisition, via debt, a non-renounceable rights issue and from working capital.

The acquisition is part of HRL's plans to push into the "fast growing New Zealand market" and complements the Australian company's earlier purchase of OCTIEF, which is an "Australian multidisciplinary consulting group specializing in helping organisations maintain Environmental and Occupational compliance, and manage related risks," according to the company's website. Precise specialises in asbestos testing and monitoring as well as other "occupational hygiene issues".

Upon completion of the purchase, Precise's current owner Andre Halkyard will become general manager for a minimum of three years and the existing employees will remain.