Industrea mining capital equipment division expansion to $50m

Industrea Limited has acquired Boart Longyear Limited’s Australian mining capital....

  Industrea Limited has acquired Boart Longyear Limited’s Australian mining capital equipment (MCE) business for $10.1m as it accelerates the expansion of its core area of mining products and services.The Boart Longyear MCE business – which has a record of sustained profitability for more than two decades and strong cash flow – will be coupled with Industrea’s existing PJ Berriman & Company (PJB) business to form a $50m mining capital division. Industrea Managing Director and Chief Executive, Robin Levison said the EPS positive acquisition would add in excess of $20m revenue and $2m in net profit before tax to Industrea. “The Boart Longyear MCE business, based in Cardiff, New South Wales, builds mining capital equipment used underground for carrying large loads, such as coal mining long wall equipment, and complements PJB, which builds lighter, people-carrying equipment,” Mr Levinson said.“Like Industrea subsidiaries, AMT and PJ Berriman, the newly acquired business has already sold into the dynamic China market and future China distribution will now be directed through Industrea’s WADAM business, providing additional synergies. “There is also potential to sell into other export markets not previously explored by Boart Longyear,” he said.Mr Levison said the purchase from Boart Longyear, funded by cash reserves and short-term debt funding, continues Industrea’s expansion as a world-class mining products and services company. “At the same time, we are currently reviewing another attractive takeover target that also meets our strict value criterion,” he said. The Boart Longyear MCE purchase follows Industrea securing a $75m war chest for acquisitions via debt and equity funding from US investment fund Cornell Capital Partners and the National Australia Bank. In the past 24 months Industrea has completed the acquisition of Qven Ltd, Advanced Mining Technologies Pty Ltd, Wadam Industries Pty Ltd, and PJ Berriman & Company Pty Ltd.In recent months Industrea has announced major contracts with leading mining houses BMA/BHP, Anglo Coal and the China-based Shenhua Coal Group.