Toll Group announced late Friday the purchase of Perth-based trucking company Mitchell Corporation for $110 million.
Mitchell is a major supplier of transport and logistics services to the mining industry, and is described by Toll as the second largest player in its sector in the WA market.
"It will be an important part of our Global Resources division where it will provide Toll with a strong base in the WA resources market complimenting our mining services operations in other states and creating service opportunities for other Toll businesses," Toll managing director Paul Little said in a statement.
Mitchell has been backed by private equity investor AMP Capital Investors since 2003, and has delivered mixed results over that time.
Its latest accounts lodged with ASIC showed a net profit of $2.5 million for the year to June 2010, on revenue of $174 million. In the prior year, net prifit was $12.1 million.
Chairman Kim Horne said in the annual report that the company had been in negotiations with two potential purchasers.
The acquisition is subject to clearance by the competition regulator. It will add to Toll's status as the Asian region's largest provider of logistics solutions.
Mr Little said the development of WA's resources industry is "globally significant and offers Toll important growth opportunities in a number of our businesses".
Toll also announced today it has been awarded a barging contract for QGC's LNG project in Queensland, and its short-listing to build, own and operate Darwin's proposed marine supply base.
