Macmahon Holdings Ltd. agreed to acquire for roughly $10 million the key contracts of the Pit n Portal underground services business from Emeco Holdings Ltd. The acquisition includes the contracts, inventory, site-fixed infrastructure assets and light vehicles of certain PnP projects, and brings additional skilled employees to Macmahon’s workforce.
Under the transaction Macmahon will trnsfer employees across strategic locations in Perth, Kambalda and Kalgoorlie, as well as customer sites in Western Australia. Key project contracts include Durkin, Cassini, Tank and Daisy Milano.
At the same time, the two entered a strategic rental partnership where Emeco is the preferred supplier of rental equipment to McMahon in Australia for applications in surface mining, underground mining, and civil infrastructure projects. The rental partnership incorporates the PnP underground fleet.
The developments align with Macmahon’s strategic objective to continue growing its business in underground mining to diversify earnings and operations, Macmahon said. “It adds significant capability to our underground business with the addition of around 260 skilled employees and builds on our existing client relationships,” said CEO Michael Finnegan.
“The rental partnership allows Emeco to exit from its underground contracting portfolio and to focus on its core rental business while building a long-term relationship with Macmahon with increased fleet rental opportunities in open-pit, underground and civil operations,” he said. “For Macmahon it allows us to maintain capital discipline, enhance return on average capital employed and maximize our free cash flow generation.”
