The acquisition will be managed by a newly formed company, Catalyst Mining Services, which is majority owned by funds managed by Catalyst.
Valley Longwall managing director Chris Freer told International Longwall News today that growth in Australia and China, organically and via acquisition, remains a priority for the company, which last year acquired Juganaut, Specialized Mining Vehicles and Specialized Mining Equipment.
Freer said over the last few months, the board and management of the Valley Longwall Group have been working toward an IPO.
“VLG is well positioned for its next stage of growth, and with the financial support and strategic guidance of Catalyst, management are confident the company will continue to successfully develop its business in Australia as well as achieve ongoing growth in the important Chinese market.
“The company has some outstanding growth opportunities ahead, and Catalyst have recognised those and fully support management in going after them.”
He said the company would continue to be known as Valley Longwall and would not be restructured.
Catalyst managing director Adrian Warner said the company aimed to build on Valley Longwall’s tremendous track record of profitable growth, in a sector with outstanding prospects.
“We believe management, staff, suppliers and customers will benefit from the financial support and strategic guidance brought to the company by Catalyst,” he said.
Valley Longwall is a leading provider of underground coal mining equipment and services and operates in three divisions – in-seam directional drilling and mining services, underground diesel vehicles and conveyor products and services.
An update of Valley Longwall’s work in China and more details of the acquisition will feature in the upcoming June edition of Australian Longwall Magazine.