Bateman makes major acquisitions in mineral processing

As IM May is prepared for printing, with an article on developments in mineral processing, comes dramatic news from Bateman. The company has recently acquired the mining-process division of Intertech, with a strong market presence in the CIS. Even more significant, Bateman’s latest acquisition, announced as IM goes to press, is that of the Delkor ‘group’ of companies for a minimum cash consideration of $11.45 million. An initial payment of $5.3 million will be paid upon completion with further payments due on 30 September 2008 and 30 September 2009. The deferred payments are subject to adjustment based on the growth in the Delkor Group’s profit before tax end June 2009. Bateman Engineering expects the transaction to complete shortly in all the relevant jurisdictions save China where completion is subject to regulatory approval.

The Delkor Group is a leader in the supply of solid/liquid separation equipment with 30 years of design, engineering and supply into mineral and chemical processing applications. It offers a wide range of equipment including horizontal vacuum belt filters, thickeners, screens and associated mineral processing equipment. With offices located in many key mining industry centres, the Delkor Group is able to supply products on a global basis. The addition of the Delkor Group will bring additional technologies, an international network of offices and a new set of clients to the Bateman Engineered Technologies (BET) division of the Bateman Group.

Delkor includes six separate operating companies located in Australia, Canada, Chile, China, India and the UK which, prior to the transaction, were connected with certain common ownership and intellectual property. Pro-forma consolidated revenue for the group was approximately $43 million for the 12 month period to end June 2007 with profits before tax of approximately $4 million.

David Minson, currently a regional Managing Director of the largest division, Delkor Americas, has been appointed as CEO of the Delkor Group. David will report to Arnold Matthee, head of BET. The senior managers of the operating companies have all signed service agreements and are incentivised via the purchase agreement to remain with the Delkor Group on a long term basis.

Bateman Engineering expects the acquisition to be earnings enhancing in the first full year of ownership. Dr. Sivi Gounden, CEO of Bateman Engineering said: “The Delkor acquisition is a critical step toward our growth objectives. It provides a platform to immediately globalise our equipment business which, to date, was focused largely on the Southern African market. Delkor’s impressive margins and history of growth will immediately contribute to our financial results.” Further commenting, Minson said: “We are very excited to be joining the Bateman group of companies and are pleased that we will be maintaining the integrity of the Delkor infrastructure to ensure continuing support to our loyal client base. With Bateman Engineering behind us, we hope to grow our business both in existing and new markets, whilst sustaining our core values of providing quality and innovation.”