Orica’s purchase price is about 8.9 times Minova’s expected calendar 2006 earnings before interest, taxes, depreciation and amortisation (EBITDA) of $98 million.

Minova will be held as a separate business alongside business platform Orica Mining Services for two years before being fully integrated into the company.

Former BP chemicals unit Minova provides specialist chemical products for underground mining and civil engineering activities in all of the world’s major mining regions with the exception of South America.

It has over 1200 employees, operates 17 manufacturing facilities in 10 countries and sells into more than 50 countries.

Orica said the deal, which includes an additional $13 million in acquisition costs, was consistent with its growth strategy and would deliver shareholder returns.

“Minova is an outstanding business in an attractive and growing market segment that is closely adjacent to Orica’s existing Mining Services business. It has a high quality and committed management team that has demonstrated an excellent track record of significant earnings and cash-flow growth,” Orica managing director and CEO Graeme Liebelt said.

Liebelt said the deal would not impact the ongoing integration of the Dyno Nobel explosives businesses.

“Minova is also well positioned in higher growth markets such as Russia, Kazakhstan and China where we see strong prospects due to ongoing demand growth and product penetration with an increasing focus on the safety and efficiency of underground mining,” he said.

The acquisition of Minova is expected to be completed before the end of calendar year 2006, after regulatory clearances are obtained.