Mackay’s Mastermyne Group is taking over underground specialist Wilson Mining Services for $7.6 million.
Mastermyne chief executive officer Tony Caruso said the services WMS provided were a smart bolt-on to complement and enhance the Mastermyne offering.
“WMS is a highly specialised underground business that has a niche service offering predominately in the longwall ground consolidation area,” he said.
“This business pioneered the introduction of phenolic cavity fill and injection products, which has greatly improved the safety and productivity of longwalls in Australia.
“WMS and Mastermyne have a long history of working together to provide chemical injections and installation support to the Australian underground coal sector and the acquisition of WMS fits well with our growth strategy of providing niche, value-adding underground services to our existing clients.”
WMS have 25 years’ experience in the underground coal industry and are known for the supply and installation of cavity fill and strata consolidation phenolic foams, polyurethane chemicals and ventilation control devices.
The company is the Australian and New Zealand distributor for Weber Mining products.
Mastermyne has signed a conditional acquisition agreement to purchase all WMS shares, to be paid as $3.8 million in cash and the balance as Mastermyne shares.
The consideration may be supplemented by further cash payments depending on the performance of WMS over the proceeding three-year period.
The transaction is expected to be completed in late August.