Supplier merger eyes operational synergies

RESOURCE Equipment has acquired Queensland-based dewatering services and pump equipment rental business, Campbell Mining Services.

Justin Niessner

The deal is fully funded by the issue of 133.3 million Resource shares to Campbell shareholders, representing 30% of Resource’s expanded issued capital.

The terms also include an earn-out of up to a further 19.9m Resource shares based on the combined performance of the group.

The enlarged company is expected to be able to take advantage of a greater geographical coverage and larger customer based, providing a platform for access to new markets and accelerated growth.

“We are delighted to be able to bring our two businesses together and create a group with substantial west and east coast Australian activities and team,” Resource managing director Andrew Aitkens aid.

“The commercial logic is compelling and it will enable us to accelerate our growth plans into further locations, sectors and customers.

“But more importantly, there is a strong cultural fit between our organisations and a talented and experience team of people at Campbell Mining Services.”

Campbell employs more than 50 people and operates as National Pump Services, which services about one third of coal mines in central Queensland.

The group’s revenue for the past three years has exceeded $A30 million per annum.

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