New direction for Mackay company after $8m deal
A MULTI-MILLION dollar business acquisition has changed the game for one Mackay company.
Mastermyne Group Limited, a mining contractor which generated revenue of $201.7m in 2018, has just signed a conditional acquisition agreement for the purchase of all the shares of Wilson Mining Services Pty Ltd.
The deal was worth $7.8m, with $3.8m to be paid in cash and the balance issued as ordinary shares in Mastermyne.
The WMS acquisition is expected to generate incremental annual revenues of about $30m.
Mastermyne CEO Tony Caruso said the purchase of WMS would fit well with the company's growth strategy of providing niche, value adding underground services to existing clients.
"WMS is a highly specialised underground business that has a niche service offering predominantly in the longwall ground consolidation area," he said.
"The business pioneered the introduction of phenolic cavity fill and injection products, which has greatly improved the safety and productivity of longwalls in Australia.
"WMS and Mastermyne have a long history of working together to provide chemical injection and installation support to the underground coal sector."
Founded in 1990, WMS is also the exclusive Australian and New Zealand distributor of Weber mining products including the Rocsil, Fenoflex and Marithan range.
Mastermyne's latest move comes after their recent $6m divestment of the scaffold, blast and paint component of their Mastertec subsidiary, sold to Radbyrn Pty Ltd.
Mr Caruso said the divestment was in line with the company's strategy.
"We want to continue to focus and grow our core specialist capabilities within the buoyant underground coal mining market."