Mastermyne to buy Wilson Mining Services for $7.6M

MASTERMYNE Group has signed a conditional acquisition agreement to buy all the shares of longwall ground consolidation specialist Wilson Mining Services for an upfront consideration of $7.6 million.
Mastermyne to buy Wilson Mining Services for $7.6M Mastermyne to buy Wilson Mining Services for $7.6M Mastermyne to buy Wilson Mining Services for $7.6M Mastermyne to buy Wilson Mining Services for $7.6M Mastermyne to buy Wilson Mining Services for $7.6M

Mastermyne CEO Tony Caruso.

WMS has 25 years' experience supporting the Australian underground coal industry and is renowned for the supply and installation of cavity fill and strata consolidation phenolic foams, polyurethane chemicals and ventilation control devices.

WMS is the Australian and New Zealand exclusive distributor of Weber Mining products including the industry leading products of Rocsil, Fenoflex and Marithan range.

It played a role in helping manage the fire at North Gooneyella last year.

Mastermyne CEO Tony Caruso said WMS was a highly specialised underground business with a niche service offering predominately in the longwall ground consolidation area.

"This business pioneered the introduction of phenolic cavity fill and injection products, which has greatly improved the safety and productivity of longwalls in Australia," he said.

"WMS and Mastermyne have a long history of working together to provide chemical injection and installation support to the Australian underground coal sector and the acquisition of WMS fits well with our growth strategy of providing niche, value adding underground services to our existing clients.

"WMS's highly valued services are a smart bolt-on which complements and enhances the Mastermyne suite of services, all of which are essential for the continuation of underground longwall and mining operations."

The $7.6 million to be paid as $3.8 million in cash and the rest in Mastermyne shares.

The consideration may also be supplemented by further cash payments, contingent on performance of WMS over the following three-year period.

The WMS acquisition is expected to generate incremental annual revenues of about $30 million, at an earnings before interest tax depreciation and amortisation margin in the range of 10-14%.

The cash component of the acquisition will be funded from Mastermyne's available cash.

The transaction is expected to be completed by late August, subject to satisfaction of conditions.