Private equity manager, Ironbridge Capital, has acquired three specialist drilling businesses valued at $200 million, including Perth based Nudrill.
The businesses, Gorey & Cole, Sides and Nudrill, specialise in large diameter drilling including de-watering and backfill for the mining sector and offshore / nearshore drilling for the oil and gas and infrastructure sectors.
Ironbridge was attracted to the opportunity due to the experience and quality of the owner-operators, their quality customer base and the substantial growth profile of the mines and commodities they service.
Ironbridge Capital Director Josh McKean said: "The Australian mining services industry is undergoing significant growth driven by Australia's competitive advantage in most commodities."
"We have adopted a buy and build strategy with an initial investment in three high quality, specialised and complementary businesses in order to create a large scale mining services operation."
Importantly for the founders, customers and staff of the three businesses this transaction puts each business on a stronger footing with access to greater capital to support their growth objectives. The partnership with Ironbridge will also provide the resources and management expertise to adopt best practice strategies in asset utilization, OH&S and training and development for employees.
"We have been in discussions regarding a merger for some time in order to expand our business and deliver on our customer's needs," said Viv Oldfield, Managing Director of Gorey & Cole."
"The addition of Ironbridge provides the capital and expertise to take our business to the next level."
The financing which includes a large acquisition and capital expenditure facility has been funded by Ironbridge together with a group of banks including Bank of Scotland, St George, Westpac and WestLB.
This is the 4th investment in Ironbridge Fund II, following the NZ$742 million acquisition of MediaWorks in October 2007. Ironbridge manages approximately $1.5 billion on behalf of a number of Australian and international institutional investors, investing in businesses with market leading positions and strong growth prospects.
