15/10/2018 - 14:11

Bis in acquisition, SMS merges with Rivet

15/10/2018 - 14:11

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Perth-based Bis has acquired mining services company UGM, while SMS Mining Services has merged with haulage provider Rivet Group.

Bis in acquisition, SMS merges with Rivet
Brad Rogers says the acquisition provides a ready-made expansion for the company.

Perth-based Bis has acquired mining services company UGM, while SMS Mining Services has merged with haulage provider Rivet Group.

Mining logistics company Bis today announced the acquisition of UGM, which specialises in the underground coal mining sector.

The company was founded in 1997 and has about 200 employees.

UGM is headquartered near Newcastle, with operations in Queensland and New South Wales.

Under the terms of the deal,  Bis will acquire UGM’s mining services business, conveyor installation business, underground plant hire business and diesel services workshops.

The transaction does not include the Highwall mining and Pipelion businesses.

Bis chief executive Brad Rogers said the acquisition provides a ready-made expansion for the company.

“We’re thrilled at the opportunity to expand our plant hire and maintenance capacity through this acquisition,” he said.

“We’re also looking forward to expanding our service offering through the addition of UGM’s mining services business.”

Meanwhile, local contractor SMS has been merged into Rivet Group, forming a combined company with forecast revenue of about $550 million in the 2019 financial year.

Rivet Group will provide an expanded service offering to the mining, LPG and bulk haulage industries.

The combined entity will operate in 15 locations across five states with a total workforce of 1,300 employees.

The group will have a combined order book of $1.3 billion and a combined tender pipeline in excess of $2.0 billion.

The two companies both hold a stake in mining investment firm Adaman Resources.

Rivet Group executive chairman Mark Rowsthorn said the merger was an exciting development for both companies.

“We have got to know each other over the past few years on mutual opportunities and combining the two businesses is a no-brainer when you consider the alignment of the values, services and markets they service,” he said.

“The merged group gives us a much stronger foundation to substantially grow the complementary operations.”

 

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