MACA has entered into a binding agreement to acquire Downer EDI Limited’s Mining West business in a deal that could involve a consideration of A$175 million ($132 million).
Just last week, MACA said it was considering the potential purchase of Downer EDI Limited’s Mining West division as part of a stated plan to explore and pursue growth opportunities that will deliver “value to shareholders on an ongoing basis”.
The Mining West business currently comprises four large contracts at the long-life assets of Karara (Ansteel), Eliwana (Fortescue Metals Group), Cape Preston (CITIC Pacific) and Gruyere (Gold Fields, Gold Road Resources).
MACA’s CEO and Managing Director, Mike Sutton, said the acquisition provided MACA with a very meaningful addition of a large-scale mining fleet currently engaged across these projects. This comprises 14 excavators and shovels, 65 dump trucks, 11 surface drills and 36 other ancillary machines.
The fleet being acquired is currently fully utilised, or in the process of being deployed to projects, with the equipment having mixed life (with machines being on average mid-life). MACA says its due diligence has confirmed the machines are in good working order, having been well maintained by Mining West’s internal plant department.
With the inclusion of Mining West, MACA now has total contracted work in hand of over A$3.4 billion, which provides a robust revenue base well past its 2025 financial year, Sutton added.