PERTH (miningweekly.com) – Mining services provider MACA has completed the acquisition of fellow-listed Downer EDI’s Mining West business.
The acquisition would cover all assets, contracts, employees and liabilities comprising the Mining West business, which currently include four large contracts at the Karara, Eliwana, Cape Preston and Gruyere mines, with contracted work in hand at the end of June being worth some A$1.1-billion.
Downer said on Monday that it had received an initial payment of A$109-million, and would receive an additional A$66-million in deferred consideration through 12 equal monthly payments starting in February.
The balance of the proceeds, which is some A$30-million, will be received from unwinding of working capital balances.
MACA CEO and MD Mike Sutton on Monday welcomed the Mining West employees, and said the acquisition of the business would provide MACA with a "very meaningful" addition of a large-scale mining fleet that is currently engaged across four long-life projects.
“With the inclusion of Mining West, MACA now has total contracted work in hand of A$3.3-billion at the end of December, that provides a robust revenue base well past 2025. MACA remains very active with its tendering activities and is well placed to pursue a significant number of opportunities across both current and new projects.”