Mastermyne snaps up Pybar in $47m deal

Mackay-based coal contracting powerhouse Mastermyne Group is storming into the hard rock sector with a takeover of Pybar Mining Services. It will acquire all Pybar Holdings shares in a $47 million deal that will see Pybar continue to operate as an independent business unit within the Mastermyne Group. Mastermyne said the combined group would have a $1.7 billion-plus order book and an active tender pipeline of $2.7 billion-plus “In line with our stated hard rock growth strategy, the Pybar Mining Services acquisition is an exciting opportunity for Mastermyne to accelerate growth and become a leading national mining services organisation with material scale," Mastermyne managing director and chief executive officer Tony Caruso said. "The Pybar acquisition is highly complementary to Mastermyne’s existing underground business and expands the combined group’s addressable markets to support ongoing growth, in addition to increasing the earnings resilience of the group by diversifying our commodity exposure. "With this acquisition we are building a diversified underground mining services business providing specialised underground services directly linked to production.” As part of the transaction, the company proposes a name change for the holding group to Metarock Group, with Mastermyne and Pybar Mining Services to become operating subsidiaries. Subject to shareholder approval and other conditions, Mastermyne expects to complete the Pybar acquisition by the end of the year. Related: Coal sector’s master of opportunity With a core competency in metalliferous underground hard rock mining, Pybar has a skilled workforce of more than 1100 people and a large fleet of equipment. Services include mine development, raiseboring, mine production, shotcreting, and cable bolting and production drilling. Current Queensland projects include Thalanga mine near Charters Towers and the Eloise and Black Rock Cave sites in North West Queensland. Pybar founder and current executive chairman Paul Rouse will join the Mastermyne board as a non-executive director. Pybar executive chairman Paul Rouse. Mr Rouse said the acquisition would be value adding for the company's management, workforce and clients. "We view this as a unique opportunity to bring two quality businesses together, that are highly complementary to one another, and to accelerate the opportunities that lay ahead of us," he said. The Pybar acquisition implies an enterprise value of about $99 million for the business, with an expected equity purchase price of approximately $47 million once debt items are considered. Mastermyne will pay $23.5 million in cash, with half of that payable on completion of the transaction and the remainder on the first anniversary of the transaction completion. The deal also includes scrip consideration of approximately 23.2 million Mastermyne shares at an implied value of $23.5 million.

Mastermyne snaps up Pybar in $47m deal

Industry Queensland

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