Wyllie's Viburnum makes move with $17.5m Surtron buy

The Wyllie Group-backed private equity vehicle Viburnum Funds Pty Ltd has made its first acquisition, paying $17.5 million for Imdex Ltd subsidiary Surtron Technologies Pty Ltd.

Osborne Park-based Surtron supplies drillhole survey, geophysical logging and directional drilling services to the mining and civil construction industries, an industry Imdex today said was outside its core business strategy.

Viburnum made the acquisition in collaboration with the existing Surtron management team, Imdex said in an announcement.

Viburnum is backed by Wyllie Group, Home Building Society chairman Tony Howarth, former Home chief executive Craig Coleman and former ANZ Bank executive Marshall Allen.

The full text of an Imdex announcement is pasted below

Statement by I F Burston, Chairman, Imdex Limited

Imdex Limited (Imdex) has executed a conditional agreement to sell 100% of the shares in Surtron Technologies Pty Ltd, Surtron Technologies (UK) Ltd and Surtron Technologies US Inc (together Surtron) which operates the business relating to the provision of geophysical logging, down hole surveying and directional steering.

The sale price can be summarised as follows:

1. A$17.5 million cash, $875,000 of which has been received as a deposit with the balance payable at settlement; and

2. A further A$2.3 million (approximately) representing the repayment of loans by Surtron to Imdex from existing cash reserves of Surtron. This loan is to be paid at settlement.

Settlement is scheduled to occur in November 2007.

Imdex's core business is the supply of drilling fluids and chemicals and down hole instrumentation to the global drilling industry. Surtron is deemed non core to this strategy.

The purchaser is a consortium of the existing Surtron management team and private equity group Viburnum Funds Pty Ltd (Viburnum). Viburnum is a Perth based alternative asset fund manager backed by the Wyllie Group and manages funds on behalf of the Wyllie Group and third party investors. Viburnum's private equity focus specialises in WA orientated expansion and replacement equity opportunities with experienced management teams.