Australian mining services firm Ausdrill has signed an agreement to acquire all of the equity and equity-like instruments in underground hard-rock mining contractor Barminco Holdings for around A$271.5m ($197.2m).
The transaction, which represents an enterprise value of $697m, also involves assumption of Barminco’s debt.
Go deeper with GlobalData
Under the terms of the deal, Ausdrill will offer 150.7 million fully paid ordinary ex-dividend Ausdrill shares andA$25.4m ($18.44m) in cash.
Furthermore, the company will undertake an equity raisingto clear debt.
Following the completion of the transaction, Barminco shareholders will hold 22.1% of the ordinary shares in Ausdrill.
The companies are currently 50:50 joint venture partners (JV) of African Underground Mining Services (AUMS), which recently secured a contract with Roxgold in Burkina Faso.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataBarminco CEO Paul Muller said: “Barminco and Ausdrill are a great fit, with the businesses providing complementary services and having worked together for a decade through our AUMS JV.
“By bringing these two businesses together and creating Australia’s second largest mining services company, we will be able to provide a broader range of services for our customers and generate additional opportunities for our employees.
“Barminco had a strong 2018 financial year and our focus is to continue safely delivering results for our customers.”
Barminco’s revenue for FY2018 stood at A$731.9m ($531.6m), while earnings before interest and tax (EBIT) were A$90.6m ($65.8m), and a net profit after tax was A$38.6m ($28.03m).
The transaction is conditional on a range of factors, including shareholder approval.
Established in 1987, Ausdrill has operations across Australia, Africa and the UK.
With a workforce of more than 5,000, the company offers services in contract mining, grade control, drill and blast, exploration, mineral analysis, and procurement and logistics.
