Australian mining services provider Ausdrill has closed the $197.2 million transaction to acquire underground hard-rock mining contractor Barminco in order to strengthen its position.
The company purchased all of the equity and equity-like instruments in Barminco by offering 150.7 million shares and $18.44 million in cash, representing an enterprise value of $697 million.
Ausdrill said that not only is it a strategically and financially compelling deal, but there is also a good cultural fit with the two businesses, having worked together in Africa through its African Underground Mining Services joint venture for over a decade now.
Both companies are expecting earnings growth in the fiscal year 2019 and by bringing the businesses together, future growth opportunities are enhanced globally.