Wood has agreed the sale of its Terra Nova Technologies business to Cementation Americas, a business owned by Murray & Roberts Holdings.
The sale of the conveying and material handling systems solutions business is expected to bring in cash proceeds of $38 million, Wood said, with closing expected in the June quarter.
David Kemp, Wood Chief Financial Officer, said: “Terra Nova Technologies has a strong track record in delivering material handling equipment to our customers. Wood’s strategy going forward is to focus on asset-light solutions rather than the manufacture/fabrication of equipment.
“The disposal makes a good contribution to our non-core asset disposal programme which is a key element of our deleveraging plan.”
Terra Nova Technologies has complete design/supply and engineering procurement and construction capabilities. Its systems are custom engineered for the mining and mineral processing, iron, coal, aggregate, phosphate and cement industries.
Its renowned mobile stacking systems, including the patented Super Portable® systems, are used worldwide for copper, gold and uranium heap leaching operations as well as dry tailings stacking.
In a later release, Cementation Americas said TNT has earned a solid reputation for providing quality design, supply and commissioning services for crushing and screening plants, overland conveyors, heap leach systems and mobile stacking systems for waste and dry tailings.
Justin Oleson, President of Cementation Americas, said: “The purchase of TNT fits well within Cementation’s strategy to improve our ability to serve clients, both geographically and across the mining value chain. The combining of Cementation and TNT complements both our underground and surface design/build portfolios, and better positions Cementation to support our client’s total mining needs.”
Regarding the acquisition, Ron Kelly, President of TNT, said: “The combination of TNT and Cementation is an excellent fit strategically. We share several key customers, and together, we can provide these customers with enhanced value through a single source for products and services. There is also significant potential for TNT and Cementation to grow, expanding into new common markets.”