Mining services provider Ausdrill has sold its dump truck tray manufacturing business DT HiLoad to Australian-based Schlam Engineering.
The sale includes all brands, patents and material fixed assets associated with the business and is expected to generate total proceeds of up to $8m.
Ausdrill plans to dispose any residual inventories and non-critical business assets through auction or sale to third parties.
Schlam Engineering managing director Ryan Schlam said that the acquisition was a strategic decision to increase capability in its core areas of expertise.
"DT HiLoad has synergies with Schlam Engineering in that it is a specialist in design and manufacture of dump truck bodies and mining buckets."
Ausdrill managing director Ron Sayers said: "This sale concludes the shutdown of DT HiLoad that was announced in January 2016, and aligns with our strategy of exiting non-core and underperforming assets.
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"Importantly, the sale to an industry participant will consolidate the activities of both Schlam and DT HiLoad for the benefit of all stakeholders."
The sale includes $2.6m in up-front consideration, and additional steel as well as tray inventories will be provided on a consignment basis for three years.
Ausdrill acquired DT HiLoad in 2009 and announced its intention to sell it in January 2016.
Schlam said that the acquisition is aligned with its existing suite of services.