Tag Archives: mining M&A

Metso Outotec planned combination wins Finnish FSA approval

Bulk handling, Comminution of minerals, Equipment maintenance, IoT, Mineral processing, Mining mergers and acquisitions, Mining services, Water management, , , , ,

The planned combination of Metso and Outotec has received approval from the Finnish Financial Supervisory Authority, the two companies have reported.

The approval is tied to the Finnish language demerger prospectus relating to the combination of Outotec and Metso.

Outotec and Metso announced on July 4, that the boards of directors of Outotec and Metso had approved a combination agreement and a demerger plan that would see Metso Outotec Corp created.

As part of the deal, Metso Flow Control, which was recently split off from the Metso Minerals division, will become a pure-play listed entity under the name of Neles.

The combination of Metso Minerals and Outotec is highly complementary and will create a unique company in the industry, according to the two companies. “Metso Outotec will leverage the strengths of both companies, including technology and R&D, product and process excellence, scale and global service offering footprint. The combination will deliver significant benefits to all stakeholders,” they said.

An extraordinary general meeting of Outotec and Metso shareholders was expected to convene on October 29 to approve the demerger plan, with the registration of the completion of the demerger with the trade register maintained by the Finnish Patent and Registration Office expected to take place in the June quarter of 2020, subject to other approvals.

McCloskey becomes part of Metso

Comminution of minerals, Mineral processing, Mining mergers and acquisitions, , , , ,

Metso says it has completed the acquisition of McCloskey International, a Canadian mobile crushing and screening equipment manufacturer with market share in the aggregates sector, as well as customers in the frac sand and industrial minerals segments.

The deal was announced back in June, with Metso, at that time, saying the acquisition would allow the company to “better take part in the attractive growth of mobile products within the aggregates industry”.

“This acquisition is an excellent strategic fit for Metso, because it strengthens our aggregates business and balances our traditionally mining-focused Minerals portfolio. With McCloskey as part of Metso, we are also able to better take part in the attractive, long-term growth of the mobile equipment market within the aggregates industry,” says Pekka Vauramo, Metso’s President and CEO.

Markku Simula, President of the Aggregates Equipment business area of Metso, said: “This acquisition expands our offering to new customer segments and application areas. McCloskey’s capabilities and technical solutions strengthen our ability to address diverse customer needs through complementary channels and offerings. We are confident that McCloskey will align well with Metso, and we are excited to welcome new colleagues to the Metso family.”

McCloskey will be reported in Metso’s Minerals segment as of the December quarter.

Kumera shifts gears with CuW Keller acquisition

Equipment maintenance, Mining consumables, Mining equipment, Mining mergers and acquisitions, Mining services, , , , , ,

Kumera Corporation has added to its base metals process equipment, metal foundry and mechanical power transmission offering with the acquisition of industrial and marine gearbox manufacturer CuW Keller.

The Germany-based company produces, among other products, conveyor and bucket wheel drives, slewing drives, bucket excavator and crawler drives, and rotary drives for the open-pit mining sector.

As part of the acquisition, the German subsidiary of Kumera, Kumera Getriebe GmbH, will continue the operations of CuW Keller. This will see around 160 employees transferred over.

Kumera, a family-owned organisation established in 1947, consists of three core businesses: process equipment for base metals, metal foundry, and mechanical power transmissions for marine and industrial applications. It employs 650 people at manufacturing locations in Finland, Austria, Norway, China and, now, Germany.

Kumera’s power transmissions come with a wide range of standard and tailormade gearboxes for industrial application in the pulp and paper and metallurgical industries, as well as marine transmissions and propulsion systems for mid-size seagoing vessels. Kumera, therefore, saw the Keller portfolio complementing its existing product line.

Helmut Hochegger, Managing Director of Kumera and the nominee MD of Kumera Getriebe, said: “This is definitely a great opportunity for both companies to strengthen their position on the world market…The Keller high quality products and technical superiority is widely recognised by the loyal clientele and sets a firm foundation for future efforts.”

CQMS Razer bolsters North and South America mining business

Equipment maintenance, Mining consumables, Mining equipment, Mining maintenance, Mining mergers and acquisitions, Mining services, , , , , , , , ,

CQMS Razer has agreed to acquire California-based Berkeley Forge & Tool’s (BFT) mining products and associated IP, including patents, new product development pipeline, branding, and trademarks.

The Australia and US-headquartered technology and engineering company, owned by American Industrial Partners, said the acquisition was a strategic move to continue expansion of its global market presence. It will also complement its existing mining product range, it said.

CQMS Razer CEO, John Barbagallo, said the combined business would enhance capabilities to effectively supply and support the global mining sector, especially in the North and South American markets where BFT has been providing the industry with products for more than 50 years.

He added: “Together, we will broaden our product offering, increase our technology and solutions footprint, and enhance our supply chain capability.”

Based in Berkeley, BFT has been supplying mining equipment components into North and South America since the 1960s. This includes forged ground engaging tools.

Timken bolsters automatic lubrication offering with BEKA buy

Automation, Equipment maintenance, Mining consumables, Mining maintenance, Mining mergers and acquisitions, Mining services, , , , ,

The Timken Company says it has reached an agreement to acquire BEKA Lubrication for around $165 million, expanding its market share in the automatic lubrication market which it entered in 2013 with the purchase of Interlube.

Timken is already a leader in engineered bearings and power transmission products. BEKA, meanwhile, is a global supplier of automatic lubrication systems and serves a range of industrial sectors including wind, food and beverage, rail, on- and off-highway and other process industries.

Just one of the products BEKA produces for the mining industry is the BEKA-MAX automatic lubrication system, which services vehicles such as dump trucks, draglines, excavators, LHDs , shovels and rock drills.

Richard G Kyle, Timken President and CEO, said the acquisition of BEKA expanded the company’s global leadership in the attractive automatic lubrication systems market sector, in addition to increasing Timken’s geographic scale and market coverage in Europe and Asia. It also created new opportunities to serve wind and other industrial end markets more fully, he added.

“BEKA is a premier brand and technical leader, and like our Groeneveld business (which it acquired in 2017), offers automatic and central lubrication systems that reduce operating costs and extend equipment life,” Kyle said.

“We expect to realise significant synergies, margin expansion and revenue growth opportunities through the combined Groeneveld-BEKA business.”

BEKA, family owned and operated since its founding in 1927, is headquartered in Pegnitz, Germany. Its sales are expected to be around $135 million for the full year 2019. The company employs around 900 people, with manufacturing, research and development based in Germany, and assembly facilities and sales offices around the world.

With the acquisition of BEKA, Timken says it will become the world’s second largest producer of industrial automatic lubrication systems, according to industry estimates. Automatic systems have gradually displaced manual lubrication methods to improve equipment life and reliability, while reducing the total cost of ownership.

The company concluded: “The transaction advances the company’s strategy, which is focused on growing its leadership position in engineered bearings while diversifying Timken’s portfolio into adjacent products and markets.”

The privately negotiated transaction is subject to regulatory review approval in Germany and is expected to close during the December quarter of this year.

Babylon Pump & Power adds Queensland hub to Western Australia base

Mining consumables, Mining equipment, Mining services, Water management, , , ,

Babylon Pump & Power has established a rental service base on the East Coast of Australia with the completion of its acquisition of Primepower Queensland.

The company announced the deal with the leading diesel engine specialist back on July 26, saying it would pay for the company with a mixture of cash, shares, delayed performance payments and assumption of debt.

Primepower was founded in Mackay, Queensland, in 2004, and has a client base including Peabody, Fortescue Metals Group, BHP Mitsubishi Alliance, Anglo American, Wesfarmers and Minerva.

The Primepower buy, according to Babylon, offers:

  • Geographic and technical expansion;
  • Diversification of commodity exposure;
  • Purchasing power and contract synergies;
  • East coast platform to introduce rental services; and
  • Workshop flexibility with no additional corporate overhead.

Post-acquisition, Babylon will be one of the largest independent and diversified engine re-builders in Australia, poised for growth in specialist rental nationally, with a focus on Australia’s two key mining states, Western Australia and Queensland, the company said.

SLR adds RPA inc to growing mining and minerals practice

Environmental, Mineral exploration, Mining mergers and acquisitions, Mining services, Sustainable mining, Water management, , , , , ,

Global environmental and advisory solutions firm SLR says it has acquired RPA Inc, a 60-person, leading mining advisory business with teams in Toronto, Denver and London.

The RPA team includes geological, mining and metallurgical consultants who have provided expertise and advice on every continent to clients in the mining industry for more than 30 years.

SLR says the team will bring world-class mining advisory services to its existing mining and minerals practice, not only in North America and Europe but across the globe.

This is not the first acquisition SLR has carried out recently. Back in December, it announced it was buying Northern Resource Consultants (NRC), a 25-person team of environmental specialists based in Townsville, Queensland, Australia. This also added to its mining and minerals practice. It also bought Novus Environmental and HydroSimulations.

RPA’s clients include major mining companies, exploration and development firms, banking, government, law firms, individual investors, and private equity, according to SLR. “RPA is recognised as a worldwide leader in mineral resource and mineral reserve estimation in compliance with all reporting codes; technical due diligence for mergers and acquisitions, financings and exchange listings; mineral property valuations, independent engineers for project debt financings, and expert witness in international litigation and arbitration cases.”

SLR and RPA have collaborated on client projects for several years and together will be able to offer clients in the mining sector a complete service extending from value creation and generation through resource and reserve work to environmental and social risk and liability management, according to SLR.

Neil Penhall, SLR’s Chief Executive, said: “We have always been strong on service delivery for our mining and minerals clients, but the addition of the RPA team really lifts our advisory capability to another level. Together we have a world-class environmental solutions and advisory offering for clients on every continent.

“This is our fourth acquisition in just over six months and, again, reflects the confidence both we and our new investors, Charterhouse Capital Partners, have in the market and the opportunities to provide worldclass environmental solutions and advice to our clients.”

Graham Clow, RPA’s Chairman, added: “We pride ourselves on providing the very best advice to our clients and believe that together with our new colleagues at SLR we can deliver an even better range and depth of solutions in the mining and minerals sector.”

SLR’s Global Head of Mining and Minerals, Dave Walker, said: “We’ve worked successfully on projects with the RPA team for several years. Now we can operate as one team and really provide a complete solution to our mining and minerals clients.”

Mammoet and ALE to combine heavy logistics expertise

Equipment maintenance, Mining equipment, Mining maintenance, Mining mergers and acquisitions, Mining services, , , , ,

Mammoet says it has signed an agreement to acquire ALE in a deal that will see two big players in the heavy logistics for mines market combine.

Both companies specialise in engineered heavy lifting and transport for sectors such as the petrochemical industry, renewable energy, power generation, civil construction and the offshore industry.

Paul van Gelder, CEO of Mammoet said: “We are very happy with this agreement. Mammoet and ALE complement each other in geographical presence on all continents. Together, we have a well-balanced portfolio of activities worldwide. This enables us to improve our service proposition and create synergies, as we are able to mobilise equipment and personnel swiftly anywhere. Last but not least, Mammoet and ALE both have a strong legacy in innovations which, once combined, will enable us to grow as a technologically leading player.”

One such innovation is the Mammoet Trailer Power Assist, a new engineered heavy transport solution designed to improve transport efficiency and significantly lower the carbon footprint of major projects around the world, which the company and Scheuerle, a member of the TII Group, unveiled in 2018.

Mark Harries, Group Managing Director of ALE added: “Mammoet and ALE share a strong ambition to be leading in the engineered heavy lifting and transport sector. Both companies have a strong track record and are renowned for their craftsmanship, innovations and fleet of equipment. We both have shaped the profession of heavy lifting and transport through numerous innovations in the past decades. The prospect of the two companies joining forces is very exciting.”

The closing of the transaction is subject to approval of the relevant competition authorities. Until that time, Mammoet and ALE will continue to operate strictly independently.

FLSmidth to challenge sampling status quo following IMP Automation buy

Automation, Mineral exploration, Mining equipment, Mining services, Mining software, , , , ,

FLSmidth completed the acquisition of IMP Automation earlier this year, creating, the company says, a market-leading portfolio in mineral sampling and laboratory automation.

The finalisation of the acquisition (the deal was first announced in February) means customers can immediately benefit from a complete portfolio of IMP’s laboratory automation solutions in combination with FLSmidth’s global footprint and experience in automated sampling solutions, FLSmidth says.

The Denmark-headquartered company says mine sites, ports and laboratories are increasingly seeing the benefits of automation. “By examining conventional processes, we help you design, construct and implement innovative sampling and laboratory solutions from grassroots exploration to final product,” the company added.

Tina Knudsen, General Manager, Sampling, Preparation and Analysis – Mining at FLSmidth, said integrating the companies’ collective experience in sampling and automation and industry process knowledge, will allow the company to “continue to challenge conventional sample process technologies and deliver innovative and reliable sampling and analytical solutions”.

Knudsen added: “We have united our expertise under the FLSmidth name to create an even stronger portfolio of mineral laboratory automation solutions. Together, we are well positioned to create cutting-edge, competitive solutions for mining applications.”

Victaulic after fire protection leader status following Globe Fire Sprinkler buy

Mining consumables, Mining mergers and acquisitions, Mining safety, Water management, , , , ,

Victaulic CEO, John F Malloy, says his company has purchased family-owned manufacturer Globe Fire Sprinkler in an effort to become a “true leader in all aspects of the fire protection industry”.

The combination of these two companies will have the resources and capabilities to bring exciting new solutions to the fire protection industry around the world, according to Victaulic.

Since being granted its first industry patent for mechanical pipe joining solutions, Victaulic has built up a portfolio of more than 2,000 patented solutions in the building and industrial construction industries. In the mining sector, Victaulic says six of the 10 deepest mines in the world carry Victaulic products, which cover applications from cooling; compressed air; water supply and dewatering; to slurry; tailings; backfill; dust suppression and, of course, fire protection.

Globe Fire Sprinkler is a fire sprinkler manufacturer with 105 years of continuous production of sprinklers and valves to its name.

Victaulic said: “The Globe name has persisted in its enduring identity since the introduction of the first Globe Issue ‘A’ Sprinkler in 1914. Globe developed the earliest lever-fulcrum dry pipe valve, Globe Save All centre strut sprinklers, and eventually became the first US company to utilise 5 mm and 3 mm glass bulbs in its commercial and residential sprinklers.”

Steven Worthington, who will continue to serve the combined organisation as President, Globe Fire Protection, said: “Victaulic brings additional financial resources to Globe, enabling added focus on innovation to support our customers and the industry.”

Malloy, meanwhile, said: “The addition of Globe’s fire protection sprinkler volume and engineering capabilities will provide the scale and skills necessary to be a true leader in all aspects of the fire protection industry.”