Orica acquires Peru’s mining explosives leader Exsa

Orica has signed an agreement with interests associated with Grupo Breca (Breca) to acquire all of its shares in Breca Soluciones de Voladura SAC, and its associates’ shares in Exsa SA (together representing 83.5% of the total shares outstanding in EXSA SA), payable in cash. Exsa, which is listed on the Lima Stock Exchange, is Peru’s number one manufacturer and distributor of industrial explosives.

Orica Managing Director and CEO Alberto Calderon said: “We are very pleased to announce the acquisition of Exsa, which will immediately establish Orica as the number one player in Peru, Latin America’s highest growth market, and transform Orica’s entire Initiating Systems footprint. Exsa’s world class Initiating Systems facility integrates the manufacture of almost every component of a detonator on site, providing meaningful and tangible synergies upon integration into the Orica network, with the ability to take advantage of significantly underutilised manufacturing capabilities. The deal also increases our exposure to copper and gold, and presents significant cross selling opportunities for us to introduce Orica’s technology products and services to Exsa’s broad customer base. The acquisition of Exsa perfectly complements our existing Latin American operations, where we already have a strong footprint. In addition to facilitating this acquisition, the capital raising will provide Orica with greater balance sheet flexibility to continue to invest in core capital initiatives and growth engines.”

Exsa provides technical assistance and support to the mining (particularly gold and copper) industries. It is the clear leader in Peru with significant share in both Peruvian underground and open pit markets. Exsa has an efficient supply chain, comprehensive sales distribution network and strategically located ammonium nitrate emulsion assets in north, central and south Peru. Its initiation systems and packaged explosives capability is market-leading with a new, semi-automated and integrated initiation systems manufacturing facility in Lurin, Peru.