JSE-listed engineering and construction group Murray & Roberts’ (M&R’s) Cementation Americas, which forms part of the M&R Underground Mining platform, has acquired 100% of Terra Nova Technologies (TNT) for $38-million.
The acquisition will be funded from a revolving and term loan credit facility, as well as from existing cash resources.
The acquisition of TNT complements the Underground Mining platform’s engineering and construction services, particularly in the Americas, M&R reported on Monday.
M&R CEO Henry Laas added that there was a further significant opportunity to realise increased value as a result of the potential additional growth of the TNT business by way of expansion into other geographies where M&R is active.
TNT designs, supplies and commissions overland conveyors; crushing/conveying systems; mobile stacking systems, including dry stack tailings and heap leach systems; crushing and screening plants; and in-pit crushing and conveying systems.
Meanwhile, M&R’s oil and gas platform company, Clough, also recently concluded the acquisition of US-based engineering, procurement and construction (EPC) business Saulsbury Industries for $5.2-million.
Saulsbury is staffed by experienced people with full EPC capability for projects up to $500-million.
According to M&R, the acquisition consolidates the group’s oil and gas businesses in the Americas under the Clough USA brand, providing services to the oil and gas markets in the US, which is experiencing strong growth.
“These acquisitions reaffirm our strategy of organic and acquisitive growth, our focus to further diversify internationally in growth markets aligned to our core market of natural resources and expand our service offering, which we believe will present growth opportunities for several years to come,” Laas commented, adding that M&R’s growth plans are supported by a strong balance sheet, notwithstanding difficult market conditions over the last few years.