Western Australia-based mining services company NRW Holdings has agreed to acquire BGC Contracting in a deal worth AUD310m ($209.7m).
BGC Contracting is engaged in providing services to the resources, energy and infrastructure sectors across fmining, construction and DIAB Engineering businesses.
The acquisition is expected to complement NRW’s mining technologies business with the addition of expanded capability and service offerings, including specialist industrial engineering, shutdown maintenance, and fabrication services.
Additionally, BGC Contracting’s Mining, Construction, and DIAB Engineering businesses provide NRW Holdings with enhanced platform and service offering with diversified earnings base with exposure across the entire mining lifecycle.
NRW CEO and managing director Jules Pemberton said that the acquisition is aligned with NRW’s objective to pursue opportunities to further diversify revenues and enhance shareholder returns.
Pemberton added: “With an excellent track record supported by a diversified earnings base, extensive fleet and along history with several high-profile clients, the acquisition is strategically and financially compelling and aligns with NRW’s objective to deliver growth across the business and drive NRW shareholder value.
“This transaction will enhance our core business across a variety of key financial and operational metrics and provides our shareholders with diversified exposure to our growing maintenance pillar.
“Together with our combined workforce of around 6,000 people supporting more than one hundred projects around Australia, we are well placed to offer a diverse range of services and project solutions to clients across the infrastructure, resources, industrial engineering, maintenance and urban sectors.”
BGC Contracting operates 200 units of mobile mining equipment
As per the terms of the deal, NRW will purchase BGC for an equity value of AUD116.4mf ($78.7m) which is planned to be funded via a fully underwritten placement to raise AUD120m ($81.2m).
Additionally, NRW will assume BGC Contracting’s AUD193.6m ($131m) of debt related to asset finance.
The deal is scheduled for completion in early December 2019.
BGC Contracting operates a fleet of over 200 pieces of mobile mining equipment.
Earlier this year, NRW Holdings closed the acquisition of RCR Mining and RCR Heat Treatment from the Administrators’ of RCR Tomlinson.
