31/01/2019 - 11:14

NRW buys RCR businesses for $10m

31/01/2019 - 11:14

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Belmont-based contractor NRW Holdings will purchase the mining and heat treatment businesses of RCR Tomlinson for $10 million.

NRW buys RCR businesses for $10m
The businesses generated approximately $110 million of RCR’s $2 billion revenue last financial year.

Belmont-based contractor NRW Holdings will purchase the mining and heat treatment businesses of RCR Tomlinson for $10 million.

The company’s mining and heat treatment arms employ around 300 people, primarily in Welshpool and Bunbury, with a smaller facility located in Victoria.

In a statement, RCR’s administrator McGrathNicol said the deal would preserve the jobs and entitlements for all of the employees.

The mining technologies business is an equipment manufacturer, with a range of products that includes conveyors, stacker, spreaders, sizers, scrubbers, belt reelers and screening plants.

The heat treatment division includes the largest stress relieving furnace in Australia.

The acquisition is set to be complete within two weeks and will be funded from NRW’s cash reserves.

The businesses generated approximately $110 million of RCR’s $2 billion revenue last financial year.

NRW chief financial officer Andrew Walsh, who was RCR’s CFO for years until November 2013, said the acquisition was “financially compelling” as the mining business owned significant IP and was regarded as a market leader by global resources clients.

NRW managing director Julian Pemberton said the company planned to integrate all 300 employees as quickly as possible with minimum disruption to clients.

“The annuity style income from the maintenance activities of mining technologies and heat treatment will provide a platform to continue to build a broader service offering across and expanded resources and oil and gas client base,” Ms Pemberton said.

McGrathNicol partner Rob Brauer said the sale is a great outcome which secures the future of much of the original RCR Tomlinson business that was established over 100 years ago.

“The sale ensures the RCR name remains prominent in the WA market and provides continuity for RCR customers, as they will continue to be serviced by the same expert RCR teams,” Mr Brauer said.

Earlier this week, McGrathNicol announced that Wangara-based Unique Metal Works had acquired RCR Laser, securing around 200 jobs as a result.

It is the fourth sale of RCR’s businesses.

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