Perth-based mining services company Imdex has enjoyed a jump in its share price after announcing the acquisition of German drilling fluids supplier Mud-Data for Euro 3.5 million (A$4.7 million).
Imdex has entered into a heads of agreement, with managing director Bernie Ridgeway saying the transaction provided an attractive growth opportunity.
"The acquisition of Mud-Data is attractive and consistent with Imdex's global growth strategy and focus on leading technologies," he said.
"This acquisition will further progress Imdex's goal of becoming a significant drilling fluids, chemicals and equipment supplier to the mining, oil and gas, geothermal and civil industries in Europe and a leading provider of solids control equipment globally."
Shares in Imdex went as high as $1.85 in morning trade but have settled around $1.77, up from $1.65 yesterday.
Mud-Data focuses on the design, manufacture and sale of a range of equipment relating to drilling fluid systems and accessories.
The company also supplies drilling fluids and chemicals and engineering, primarily to the oil & gas and geothermal industries.
Mud-Data has been awarded a contract for the supply of drilling fluids and equipment relating to the drilling of 40 wells in northern Germany, due to commence in June 2011 wiith an estimated total value of around €90 million over a 4-5 year period.
