North American Construction Group says it has entered into a definitive purchase and sale agreement to acquire MacKellar Group for an estimated C$395 million ($300 million).
MacKellar Group, with its heavy construction equipment fleet, is an Australia-based provider of heavy earthworks solutions to the mining and civil sectors, with a reputation derived from decades of reliable performance, NACG says. The transaction will significantly expand NACG’s capability and allow the company to serve a highly valuable and diversified base of customers globally, it added.
The transaction emerged through continued dialogue with MacKellar over the past two years, following NACG’s entry into Australia through the acquisition of DGI Trading Pty Limited in 2021. The acquisition of MacKellar is highly complementary to, and a natural strategic fit with, NACG given shared cultural alignment, focus on safety and operational similarities, NACG says. MacKellar will continue to operate and execute on its growth strategy, while delivering on its commitment of service to all its customers and partners.
MacKellar clients include Anglo American Australia at Dawson in Queensland and Bravus Mining and Resources, also in Queensland.
Joe Lambert, Chief Executive Officer of NACG, said: “NACG has built a strong relationship with MacKellar over the past two-plus years. Given the operational and cultural similarities that our companies share, this acquisition is a rare and attractive opportunity. Over the years, we have worked extremely hard to be part of the solution to help lower the operating costs of our customers through safe, efficient operation and maintenance of our equipment fleet. We are excited about partnering with MacKellar to serve our expanded customer base with the same innovations at a time when commodity producers are striving to maximise production and efficiency.”
Duncan MacKellar, Chairman of MacKellar Group, said: “Joining NACG offers a significant opportunity for both companies to share best practices and execute on our growth strategy. Our shared culture, highly skilled maintenance and operations teams, and now global operations will position us as a leader in heavy equipment fleet, allowing us to better serve customers across Australia.”
MacKellar Group adds approximately 450 mobile heavy equipment assets; 1,000 employees, including over 375 maintenance personnel; and 15 operating projects across a variety of service offerings including contract mining, civil earthworks, dry and maintained equipment rentals and component rebuilds to NACG. Its asset base is comprised of a well-maintained fleet operating at effective utilisation levels, it added.
NACG says MacKellar has strong growth prospects and a strong backlog, with operations in Western Australia and Queensland serving as a growth pillar given the large and diverse resource markets combined with a mining friendly jurisdiction. The combined company is expected to have over C$4 billion in contractual backlog by December 31, 2023, which will be the foundation to drive significant growth.
