26/07/2018 - 15:29

RDG makes $2.8m purchase

26/07/2018 - 15:29

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Resource Development Group has made its first major purchase since the sale of three subsidiaries in 2015, buying a majority stake in mining services business Mineral Solutions Australia for $2.8 million.

RDG makes $2.8m purchase
MSA is a mining services business.

Resource Development Group has made its first major purchase since the sale of three subsidiaries in 2015, buying a majority stake in mining services business Mineral Solutions Australia for $2.8 million.

Under the deal, RDG will acquire an 80 per cent stake in MSA, paying $2 million up-front, with a further $800,000 paid over the next 12 months.

MSA is a holding company for three wholly‐owned subsidiaries that operate within the materials handling, screening and ore sorting industries.

The vendors of MSA are Michael Harrington and Blake Stanley.

Mr Harrington is the managing director of Kalgoorlie-based Crushing Services Solutions, while Mr Stanley is general manager.

Mr Stanley is also the managing director of Ore Sorting Australia.

Both Mr Stanley and Mr Harrington will retain a 10 per cent interest in the business.

“The board of RDG is excited by the opportunity to work with Mr. Harrington and Mr. Stanley and will provide expertise to continue to develop the MSA businesses,” RDG said in a statement to the ASX.

“The board will also be seeking to realise synergies and other benefits that have already been identified during the due diligence phase.”

In 2015, RDG sold Ecologia Environmental Consultants, tech company Intellect Systems and engineering company Engenium.  

Shares in RDG last changed hands at 2.2 cents each.

 

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