25 March 2019
Johannesburg, 25 March 2019 – Murray & Roberts today announced the conclusion of an agreement whereby Cementation Americas, which forms part of the Murray & Roberts Underground Mining platform, has acquired 100% of Terra Nova Technologies (“TNT”) for a total consideration of US$38 million (R552 million). The acquisition will be funded from a revolving and term loan credit facility and from existing cash resources.
TNT designs, supplies and commissions overland conveyors, crushing/conveying systems, mobile stacking systems, including dry stack tailings and heap leach systems, crushing and screening plants and in-pit crushing and conveying systems. The acquisition of TNT complements the Underground Mining platform’s engineering and construction services, particularly in the Americas. There is a further significant opportunity to realize increased value as a result of the potential additional growth of the TNT business by way of expansion into other geographies where Murray & Roberts is active.
Henry Laas, Murray & Roberts Group Chief Executive comments: “The acquisition of TNT complements the engineering and construction services of the Murray & Roberts Underground Mining platform. Given the global reach and client network of the Underground Mining platform and the number of projects in execution at any time, the potential to grow the TNT business is significant.
TNT was established in San Diego, California in 1997 and was acquired from the Wood Group. TNT operates from offices in San Diego, Boise (Idaho) and Santiago (Chile). TNT has a diverse international footprint and has delivered 75 projects in more than 15 countries.
Murray & Roberts’ Oil & Gas platform company Clough, also recently concluded the acquisition of a USA-based engineering, procurement and construction (“EPC”) business from Saulsbury Industries for US$5,2 million, a strong organisation staffed by experienced people with full EPC capability for projects up to US$500 million. The acquisition consolidates the Group’s oil and gas businesses in the Americas under the Clough USA brand, providing services to the oil and gas markets in the USA, which is experiencing strong growth.
“These acquisitions reaffirm our strategy of organic and acquisitive growth, our focus to further diversify internationally in growth markets aligned to our core market of natural resources and expand our service offering, which we believe will present growth opportunities for several years to come. Our growth plans are supported by a strong balance sheet, notwithstanding difficult market conditions over the last few years”, concludes Laas.