Mining services company Ausdrill has signed an agreement to sell its Drilling Tools Australia (DTA) business to Finnish manufacturer Robit for $66m.
The news follows the company's announcement in March for the sale of its DT HiLoad truck tray business to Schlam Engineering.
Ausdrill managing director Ron Sayers said: "The sale of DTA provides Ausdrill with the opportunity to crystallise considerable value on a portion of the group's earnings, generating a profit after tax in the order of $35m and allowing us to further pay down debt.
"As Robit is a renowned manufacturer of quality drilling products with an extensive global distribution network, they will be able to service Ausdrill's drill consumable needs into the future."
As part of the deal, Ausdrill will sell its DTA's drill bit manufacturing and distribution business, which generates annual revenue from internal and third-party sales for around $35m.
Ausdrill also signed an agreement with DTA for the supply of drill parts.
Under a leasing arrangement signed with Ausdrill for five years, DTA will continue manufacturing operations at its facility in Canning Vale, Western Australia.
All exiting employees working with DTA will be retained as part of the transaction.
Ausdrill provides services in contract mining, grade control, drill and blast, exploration, mineral analysis, procurement and logistics, as well as manufacturing.