Tag Archives: mining M&A

Komatsu to expand its underground mining equipment offering with GHH acquisition

Komatsu has entered into an agreement to acquire Gelsenkirchen, Germany-based GHH Group GmbH (GHH), in a deal that will see it significantly expand its underground mining equipment market share.

Founded in the 1960s and currently part of the German-owned Schmidt Kranz Group, GHH offers a wide range of equipment focused on loaders (LHDs) and articulated dump trucks in the mid-seam mass mining, narrow-vein and low-profile market segments The company also supports customers with aftermarket parts and service support through the entire life of each machine.

With this acquisition, Komatsu will add GHH’s factories and rebuild facilities in key markets, in addition to its robust product offerings and talented staff, the company said.

Peter Salditt, President and CEO, Komatsu Mining Corp, said: “We are very excited about this acquisition as it represents a great opportunity for Komatsu to expand its offerings for underground mining equipment and accelerate new product development through synergies with Komatsu’s existing team and product offerings.

“By adding GHH’s factories and rebuild facilities in key markets in Europe, South Africa, India and Chile, we also aim to strengthen production and service capabilities for our customers.”

Komatsu intends to continue the service GHH provides and plans to support business as usual post-acquisition. The combined team will then work together to expand Komatsu’s offering for underground mining equipment and increase customer access to products in new territories.

GHH Group CEO, Dr Jan Petzold, said: “GHH is excited to be able to start a new journey with a strong player in the mining world. This opens huge doors for our people and our products to develop further and grow beyond what we could have hoped for.

“This is the next logical step in becoming a true global player and we look forward to becoming part of the Komatsu family.”

The official close of the acquisition is projected for the first half of 2023. 

In line with its ongoing mid-term management plan “DANTOTSU Value – Together, to ‘The Next’ for sustainable growth”, Komatsu says it is working to expand offerings for underground hard-rock mining, creating new value for customers with the development of new equipment, processes and technologies that will help operations step forward to the next stage for the workplace of the future and provide a more sustainable environment for the next generation.

GHH for its part has been doing exactly this, expanding its offering of, especially, load and haul equipment for the hard-rock mining space with the launch of the likes of the MK-42 underground truck (pictured) and, most recently, the LF10-NEO.

Epiroc to acquire Australia-based GET player CR

Epiroc is bolstering its exposure to the ground engaging tools (GET) market through the planned acquisition of Australia-based CR.

The company has agreed to acquire the GET and related digital solutions company as part of a plan to expand its “first-rate offering” of essential consumables and digital solutions, it says.

CR, which has an offering covering surface and underground mining, is headquartered in Brisbane and operates globally. The company’s products include cast lips, teeth, and protective shrouds installed on mining buckets and loaders. Its digital solutions include, among other offerings, the real-time GET loss detection system, GET Trakka, and the Titan 3330 payload management system. The solutions strengthen safety and productivity, and protect against expensive delays in the mining operations, according to CR.

CR has about 400 employees and had revenues of about A$240 million ($163 million) in the 12 months ending September 30, 2022.

“This acquisition will expand our offering of innovative and high-quality consumables and digital solutions that strengthen customers’ productivity and safety,” Helena Hedblom, Epiroc’s President and CEO, says. “We look forward to welcome the strong team at CR to Epiroc.”

The acquisition is expected to be completed in the first half 2023.

Sandvik to pair Polymathian portfolio with Deswik solutions for ‘unique’ combination

Sandvik has signed an agreement to acquire Polymathian Industrial Mathematics, an Australia-based provider of advanced mine optimisation software and services.

Polymathian will be reported in Digital Mining Technologies, a division within business area Sandvik Mining and Rock Solutions (SMR), Sandvik says.

Polymathian’s solutions for automated decision making and process optimisation complements the offering of Deswik, a leading mine planning software company which Sandvik acquired in April, the company added. Its product offering includes mining operations optimisation and simulation software for areas such as extraction process, material flow, energy and fuel consumption, and maintenance efficiency. It counts several of the world’s largest mining companies as customers.

Stefan Widing, President and CEO of Sandvik, said: “With the acquisition of Polymathian we continue to broaden our offering to enhance productivity in our mining customers’ value chain. Polymathian’s automated decision making and process optimisation, together with Deswik’s software tools for planning and managing production, represent a unique combination in the market.”

Polymathian will be a part of Business Unit Deswik and remain OEM agnostic, according to Sandvik.

The acquisition will enable Sandvik to further accelerate the development of its end-to-end optimisation, battery-electric vehicle (BEV) and AutoMine® offerings, by leveraging Polymathian’s unique skillset and platform, it added.

Mats Eriksson, President of Sandvik Mining and Rock Solutions, said: “Polymathian is a great addition to Sandvik Mining and Rock Solutions, and enables SMR to now have a unique digital portfolio that will help our customers to optimise their data-driven operations across the value chain and ensure their mine design is fully compatible with technologies like AutoMine and BEVs. I am very pleased to welcome Polymathian to the Group.”

Polymathian was founded in 2013, has 50 employees and is headquartered in Brisbane, Australia. The company’s annual revenues per June 2022 were around SEK100 million ($9.6 million). The transaction is expected to close during the March quarter of 2023.

Sandvik completes acquisition of Schenck Process Group

Sandvik says it has completed the previously announced acquisition of the mining related business of Schenck Process Group (SP Mining).

SP Mining is one of the market leaders in screening, feeding, screening media and train loading solutions in the industry, according to Sandvik. It also has a strong aftermarket business, which includes application support, screen refurbishment, product engineering design and manufacturing and digital support services.

It will be reported in Stationary Crushing and Screening, a division in Sandvik Rock Processing Solutions (SRP).

The two companies already had a global partnership agreement in place dating from 2016 that brought together Sandvik’s high productivity cone crushers and Schenck Process’ high capacity multislope screens.

In 2022, SP Mining expects revenues of about €200 million ($199 million) of which approximately 70% is aftermarket, and an EBITA margin accretive to Sandvik Rock Processing Solutions’ margin, Sandvik said.

Sandvik announced the planned acquisition of SP Mining back in May.

FLSmidth refocuses equipment portfolio in aim to become the leading METS player

FLSmidth has announced a strategic change to enhance long-term profitability and to accelerate growth in its core Mining business, which could see it offload its portfolio of port systems, stockyard equipment, “standard bucketwheel excavators”, “continuous surface mining equipment”, and mine & overland conveyors.

The decision, which comes seven weeks after closing the acquisition of TK Mining, is the result of a planned strategic review of the combined FLSmidth Mining and former TK Mining technology product portfolio against FLSmidth’s long-term strategic direction and ambitions, FLSmidth said.

“With this change, FLSmidth is creating a new platform for improved profitability, lower risk and strategic focus on the core value creating parts of the Mining business,” it said.

The company clarified that the overall strategic rationale for the acquisition of TK Mining has been reconfirmed and the acquired business is overall in line with its expectations. Furthermore, the cost synergy potential from acquiring TK Mining has been revisited, and further cost synergies have been uncovered, FLSmidth claimed. Additionally, the pace to realise these synergies will be accelerated.

The annual cost synergy target is now expected to be around DKK 560 million ($74 million), instead of the previous DKK360 million, with the annual cost synergy run-rate now expected to be achieved by end of 2023 (previously first two years after closing of the acquisition).

The aforementioned review intended to assess all combined mining activities and products from a strategic, financial and sustainability perspective against FLSmidth’s long-term strategic direction and ambitions, the company said. As a result of the strategic review, it has been decided to split the Mining business into two separate segments for operational and reporting purposes:

  • A continuing Mining segment focused on profitability, growth and sustainability;
  • A new Non-Core Activities segment, where activities will be fully exited either by way of divestment or wind-down of the order backlog.

The new segment split will ensure sharpened strategic focus and stronger execution of the continuing Mining activities that are key to accelerate long-term profitability and growth for FLSmidth, it said. At the same time, dedicated focus and resources will be allocated to the Non-Core Activities to ensure transparency and effective execution of the divestment or wind-down and to minimise losses from these activities.

Group CEO, Mikko Keto, said this split would reduce engineering risk, while setting the company up to become the leading technology and service solutions supplier to the global mining industry

“For years FLSmidth has been focused on engineering and large-scale projects with inherently high risks, challenging execution and volatile profitability,” he said. “We are now taking decisive action to further strengthen the focus on our core business, to ensure stronger execution and to drive value creation. The world must undertake a significant green transition over the coming years and the mining industry plays a crucial part in this. With today’s strategic change, FLSmidth is better positioned than ever before to become the leading technology and service solutions supplier to the global mining industry.”

FLSmidth’s Mining segment is dedicated to provide customers with best-in-class full flowsheet technologies and services solutions to enhance their productivity and sustainability agenda. A key focus for FLSmidth Mining is to enhance profitability through a significant service and aftermarket potential, low execution risks, high technology content and process know-how, and a strong sustainability impact

This could see the company offer single services or products, as well as projects with lower risk consisting of product bundles with related performance guarantees in accordance with FLSmidth’s risk management approach.

The continuing Mining segment encompasses, but is not limited to, FLSmidth’s key products within conveying (former TK Mining’s conveyor systems); milling & grinding (including former TK Mining’s high pressure grinding rolls); crushing & feeding; separation, thickening & filtration; pumps, cyclones & valves; sizers, screens & centrifuges; pyro-processing; sampling, preparation & analysis; and mine shaft systems.

The Non-Core Activities segment comprises specific loss-making mining activities and products that are no longer deemed to be of core strategic importance to FLSmidth, the company said. The selection criteria for these activities and product types have been that either they offer limited or no aftermarket potential, are characterised by high execution risks, are highly engineered and/or lack standardisation, and the company sees no viable commercial model for FLSmidth to turn these around. Furthermore, these products are not aligned with or important for FLSmidth’s sustainability agenda, it said.

Consequently, FLSmidth will either divest or wind-down the following activities and products:

  • All legacy FLSmidth and former TK Mining brands: port systems, stockyard equipment and standard bucketwheel excavators;
  • Legacy FLSmidth Mining brands: continuous surface mining equipment and mine & overland conveyors; and
  • Former TK Mining activities: oil extraction technology and aggregate products.

Existing contracts and ongoing activities in the order backlog will be executed and honoured, if not divested, yet FLSmidth will not take new orders for the Non-Core Activities segment, it said.

A designated organisational structure will be established to oversee the Non-Core Activities segment, with the head of the segment reporting directly to the group CFO. Around 450 employees are expected to be included in the Non-Core Activities segment.

The Non-Core Activities segment comprises of an order backlog of around DKK3.6 billion as of the end of the September quarter of 2022, of which approximately half originates from FLSmidth and half from the former TK Mining. The vast majority of the order backlog relates to capital orders.

The Non-Core Activities order backlog is expected to be divested or wound down within the next three years with an expected total EBITA loss over the period of around DKK1.2 billion, FLSmidth said. The estimate is based on historical performance and costs associated with the wind-down or divestment decision. This estimate is subject to uncertainty due to the nature of winding the business down and may change depending on which of parts of the business are divested, it clarified.

Thiess in leading position to take over fellow contract miner MACA

Thiess looks like winning the acquisition tussle for fellow contract miner MACA after an increased all-cash offer was recommended by the MACA Board and NRW Holdings said it would no longer be pursuing a potential deal.

Thiess recently increased its offer price from A$1.025 ($0.71) of cash per MACA share to A$1.0751 of cash per MACA share, with the increased offer price representing a premium of 49.2% to the MACA one-month volume weighted average price as at July 25, 2022.

This followed a merger approach from NRW Holdings in August, which implied a consideration of A$1.085/share, valuing the equity of MACA at A$375 million. MACA said it did not consider this merger proposal as superior to the existing Thiess offer, continuing to recommend shareholders accepted the offer from Thiess.

Following this latest increased offer from Thiess, NRW confirmed it no longer intended to pursue the acquisition of MACA.

Including the acceptances received from MACA founders and MACA directors, Thiess’ total relevant interest in MACA is currently 15.9%.

Thiess, in its initial Bidder Statement, said it intends to operate MACA in materially the same manner supported by MACA’s workforce, brand and assets, and to continue its highly regarded community partnerships.

The proposed acquisition of MACA by Thiess is consistent with its diversification strategy, with a particular emphasis on increasing its presence within metals and minerals hard-rock mining operations in Western Australia, it says.

To this point, the company’s Western Australian hard-rock mining exposure has consisted mostly of work with BHP’s Western Australia nickel assets, in addition to a recent contract award at the Covalent Lithium Joint Venture project.

MACA has exposure to the state’s iron ore sector thanks to contracts with Fortescue and BHP; the burgeoning gold segment through contracts with Regis Resources, Ramelius Resources, Capricorn Metals and Red 5; and nickel and lithium exposure from the Ravensthorpe mine and Pilgangoora project, respectively.

Thiess also said in its Bidder Statement that it sees “a significant opportunity to combine the operational capability of both companies to continue enhancing service quality, particularly in relation to technical solutions such as deploying autonomous machinery or reducing the carbon emissions of mining services on project sites”.

Back in March, MACA announced a partnership with SafeAI to form an MoU to retrofit a mixed fleet of 100 mining trucks across multiple locations with autonomous mining technologies.

With the satisfaction of the ACCC condition on August 26, 2022, the Thiess offer is only subject to FIRB approval, no Prescribed Occurrences, no issue of convertible securities, derivatives or other rights and 90% minimum acceptances, Thiess says.

Thiess’ revised offer is scheduled to close on September 12 unless otherwise extended.

Austin Engineering to add Hulk mining buckets to its offering with Mainetec acquisition

Austin Engineering Limited says it has entered into a binding agreement to acquire Australia-based mining equipment manufacturer, Mainetec Pty Ltd, for an initial amount of A$19.6 million ($13.4 million), funded through cash reserves and debt.

Three further earn-out payments will be made if Mainetec achieves agreed performance hurdles in the three years following completion, Austin clarified.

The acquisition will give Austin access to Mainetec’s Hulk range of high performance mining buckets, increasing the potential customer base in all of Austin’s markets, it said. The Hulk buckets complement Austin’s recently-launched JEC bucket range and the dual product offering will increase Austin’s bucket market share in Australia, especially on the East Coast where Mainetec has a well-established presence.

Austin also plans to offer Mainetec’s high value dipper buckets into its global markets, particularly North and South America, where there is high demand and a large dipper bucket market.

Mainetec is a leader in the design and manufacture of high performance, customised excavator mining buckets and currently supplies several blue-chip mining companies, according to Austin. It builds and upgrades dipper buckets, and supplies the majority of dipper bucket systems in Australia. It also manufactures rope shovels, and offers bucket repairs and spare parts.

Mainetec is expected to have revenue of more than A$40 million (on an annualised basis) for the 2023 financial year (to June 30, 2023), with the acquisition expected to deliver significant synergies through the lower supply chain costs Austin is able to provide, and optimised operating costs.

Austin CEO and Managing Director, David Singleton, said: “The key benefits of this acquisition for Austin are the ability to expand our mining bucket offering in Australia and then to offer that into our other markets around the world. Mainetec is a technology-led business that has developed the Hulk range of buckets suited to demanding applications and has also become a key supplier in Australia for dipper buckets used on rope shovels. Dipper buckets are typically the largest used in the industry and we will be able to introduce these upgrades through our operations in the much larger Americas markets. Mainetec’s presence on the East Coast of Australia will also support our re-energised activity in that region.

“The acquisition has clear synergies for both companies. Mainetec complements our core business offering and Austin is able to integrate more competitive supply chain economics and cost synergies into the Mainetec business.

“Additionally, in Mainetec we gain a very talented team as well as some leading design IP. I am pleased to welcome the founders of Mainetec and their workforce to Austin, with the determination that Austin will assist them to continue product development that will enable further growth and success in Australia and beyond.”

RSK Group increases mining sector exposure with Projence acquisition

RSK Group Limited, a sustainable solutions company, says it has added New South Wales-based integrated project management firm, Projence, to its rapidly growing Australian business.

The third acquisition in the last eight months and fourth overall in Australia, Projence joins three Australian companies – civil engineering company, Western Project Services; environmental and occupational hygiene business, EDP Consultants; and advisory and project delivery services firm, SJA.

Joining the RSK Group, Projence will further grow the group’s project management and commercial services capabilities within the region and expand its global portfolio of environmental, engineering and technical solutions businesses, the company says.

“As we continue to build on the good work RSK has accomplished in the last three decades, strategic acquisitions such as Projence will bring enhanced value to the table for our stakeholders and businesses and further expand our offerings,” Alan Ryder, Founder and Chief Executive Officer of RSK Group, said. “With the comprehensive end-to-end solutions synergised and backed by the expertise of our group of over 150 businesses, I am confident that RSK will continue to secure our position as a global leader in the delivery of sustainable solutions, bringing clients the best value with minimum negative environmental and social impact.”

The acquisition of Projence strengthens the capabilities of the group in the rail and port sectors, enables greater exposure for RSK into the mining sector, and comes shortly after a move by EDP Consultants to expand into the Hunter region of New South Wales. The Hunter region and the wider northern New South Wales area are key parts of the RSK Group’s expansion strategy, it says.

Established in 2011, Projence has provided clients in Australia with practical and results-focused engineering and commercial greenfield and brownfield solutions across a range of industries, including mining, property, rail, power generation and port. It has worked on over 250 projects amounting to over A$1 billion ($709 million) in capital value, including the Coal Export Terminal 3 a

Gavin Heydon, Director of Projence, said: “This acquisition adds value to our business in the region and helps us lay out a clear path to long-term sustainable growth. With RSK’s support and guidance, we look forward to becoming an integral part of a larger global company and laying down a stronger foundation for services that we provide.”

Pictured is Mitchell Purvis (left) and Gavin Heydon (right), Projence Directors

Epiroc completes acquisition of electrification infrastructure solutions provider JTMEC

Epiroc says it has completed the acquisition of JTMEC, an Australia-based company specialising in providing mines with electrical infrastructure, supporting the industry’s transition to battery electrification.

JTMEC, based in Perth, Australia, is an electrification infrastructure solutions provider for both underground and surface mines. The company’s offerings include high voltage installation and maintenance work, transformer servicing and testing, engineering design, feasibility studies, and training. It also manufactures electrical products including substations and mine chargers.

JTMEC had 190 employees and revenues in the fiscal year ending June 30, 2021, of about A$34 million ($24 million).

Epiroc announced on April 29, 2022, that it had agreed to acquire JTMEC.

Downer completes mining portfolio divestments with latest sale to BUMA Australia

Downer EDI Limited has completed the final transaction as part of its Mining portfolio divestment plan with the sale of its Open Cut Mining East business to BUMA Australia Pty Ltd.

As announced in October, Downer will receive approximately A$150 million ($108 million) in cash proceeds from the transaction, subject to completion adjustments.

Together with the previously announced Mining and Laundries transactions, total proceeds from Downer’s divestment program amount to A$778 million, the company said. Included within this amount is the $79 million transaction with Bridgestone Mining Solutions Australia Pty Ltd for Otraco International Pty Ltd, the A$175 million sale of the Mining West business to MACA and the divestment of Downer Blasting Services to Enaex SA.