US company Civeo has acquired Kewdale-based Action Industrial Catering, which counts Fortescue Metals Group, Pilbara Minerals and Western Areas among its major clients.
Texas-based Civeo said the takeover would significantly enhance its Australian footprint by providing an additional entry point into the growing Western Australian remote mining market.
The terms of the all-cash transaction were not disclosed by the parties.
Established in 1995, Action Industrial is the 12th largest caterer in WA by staff, according to BNiQ data, with around 200 catering employees in the state.
Owen Selman and John Sells are the directors of Action, and Kim Irvine is the general manager.
It currently has work at FMG’s 1,850-room Kangi Village in the Pilbara and Western Areas’ 450-room village at its Forrestania nickel project in the Goldfields.
In 2017, Pilbara Minerals awarded to a joint venture between Njamal Services and Action Industrial Catering the camp services contract at its Pilgangoora lithium project in the Pilbara.
It also lists BHP, NRW Holdings, Decmil, Woodside, Ramelius and John Holland as clients.
Civeo said Action services 900,000 room nights per year.
Civeo currently operates a total of 33 lodges and villages in operation in Canada, Australia and the US, with an aggregate of approximately 33,000 rooms.
In WA, it operates the 230-room Kambalda Village, which services surrounding gold and nickel mines, and the 208-room Karratha Village.
It also offers services in NSW and Queensland.
Civeo chief executive Bradley J Dodson said the company looked forward to building on Action’s strong customer relationships and its 20-year track record of high service standards for its customers in WA.
“This acquisition significantly bolsters our Australian segment, providing a strategic foothold in the large integrated services and WA markets, further strengthening Civeo’s market position as an integrated service provider across Australia,” he said.
“Our acquisition of Action underlines our focus on pursuing growth opportunities that fit within our core competencies and strategic direction, while further enabling organic growth opportunities.
“Importantly, we are well-positioned to continue to capitalise on opportunities to grow our catering and managed services footprint in Australia as we maintain our commitment to top-tier service for all of our customers.”