16/12/2016 - 13:01

Maca buys Interquip stake

16/12/2016 - 13:01

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Mining and civil contractor MACA has diversified through the purchase of a 60 per cent stake in Maddington-based Interquip for $8 million.

Maca buys Interquip stake
Maca says it will provide ongoing funding support to Interquip to facilitate growth.

Mining and civil contractor MACA has diversified through the purchase of a 60 per cent stake in Maddington-based Interquip for $8 million.

Interquip was established in 1996 by Justin Hardy, whose family will retain a 40 per cent shareholding in the business.

Maca has an option to purchase the remaining 40 per cent stake after three and a half years.

Interquip had revenue of $24.3 million in the past financial year and is expected to generate $17 million in the second half of this financial year, according to Maca’s statement.

It current projects include refurbishment of Blackham Resources’ Wiluna gold plant, where it was appointed as the structural, mechanical and piping (SMP) contractor.

That followed its refurbishment of Saracen Mineral Holdings’ Thunderbox gold plant.

Other clients have included St Barbara, Galaxy Resources, Millennium Minerals, Troy Resources and Western Areas.

Maca’s $8 million payment to Mr Hardy will be a mix of cash (70 per cent) and shares (30 per cent) and is subject to an earn-out arrangement.

Maca said it would provide ongoing funding support to Interquip to facilitate growth.

Maca operations director Geoff Baker said the acquisition would enable the company to establish an SMP offering to the mining industry.

“We can see many near term opportunities to grow the Interquip business utilising our strong balance sheet and to complement the current services we offer our clients,” he said in a statement.

 

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