Ausdrill confirmed on Wednesday it had signed a non-binding heads of agreement with representatives of the sellers of BTP, opening the door for Ausdrill to acquire the firm.
The HoA is non-binding other than in respect of certain confidentiality and exclusivity arrangements and mutual warranties between the parties.
The parties are therefore free to continue to negotiate the terms of the transaction prior to entering into any binding agreements in respect of the proposed transaction.
The proposal remains subject to a number of conditions including completion of Ausdrill due diligence, negotiation and execution of binding agreements and Ausdrill arranging appropriate financing.
BTP was established more than 25 years ago and is involved in the supply of reconditioned/refurbished earthmoving parts; rental of heavy earthmoving equipment and specialised mining support vehicles; and sales of earthmoving equipment.
The business is also supported by a hydraulics and engineering capability and global procurement network.
Ausdrill said it would update the market once binding arrangements were entered into, or if any other material developments arose.
This article first appeared in ILN's sister publication ConstructionIndustryNews.net.