ROBIT SIGNED A MAJOR ACQUISITION IN AUSTRALIA
ROBIT PLC PRESS RELEASE 19 MAY 2016 AT 8.00 P.M.
ROBIT SIGNED A MAJOR ACQUISITION IN AUSTRALIA
Robit Plc has the pleasure to announce that it has signed a Sale and Purchase Agreement to acquire 100 % of the shares of Drilling Tools Australia Ltd ("DTA"), a subsidiary of Ausdrill Ltd, an ASX listed international mining services company.
DTA is a specialist in the Australian drilling consumable market offering Down-the-Hole and Top Hammer drilling equipment with corresponding engineered solutions to the mining and construction industry. The company is based in Perth, Canning Vale, Western Australia with 69 employees. DTA's net sales in the financial year ending June 2016 will be approximately 35 MAUD (nearly 23 MEUR) with a profitability (EBITDA%) over 20 %. The debt and cash free purchase price (EV) of DTA is 66 MAUD (approximately 42 MEUR). 30 % of the purchase price will paid on 31 December 2016. Through DTA, Robit has also entered into a 2.5 year preferred supply arrangement with Ausdrill (one of the major mining contractors in the world) for the supply of consumables.
The effective date of the purchase of the shares will be 30 June 2016 and the transaction remains subject to certain customary closing conditions. Robit will finance the transaction partly from the proceeds of its IPO in May 2015 and partly through new bank financing.
Transaction details
The acquisition of DTA is an important part of Robit's global growth strategy, which Robit introduced in its listing to Nasdaq Helsinki Ltd's First North Finland marketplace in May 2015.
Robit's target is to achieve a strong foothold in the Australian market, one of the biggest markets for drilling consumables in the world. The acquisition enables the local production of high quality drilling tools in Perth ensuring better availability and shorter delivery times of products to customers in Oceania and the Far East. Through the acquisition Robit gains new customers from important players in the Australian mining market. The mining segment represents about 25 % of Robit's global net sales before the transaction. Through DTA, Robit has also entered into a 2.5 year preferred supply arrangement for the supply of consumables with Ausdrill which is one of the major mining contractors in the world.
"I am very pleased that after a long negotiation process with Ausdrill Ltd we were able to reach an agreement in bringing DTA and Robit together, building company net sales close to 70 MEUR. This step, together with our targeted high organic growth of 15 % p.a, will take us to the next level in our strategy", says Harri Sjöholm, the Chairman of Robit. "By combining Robit's global manufacturing expertise with DTA's high quality service culture we are able to service customers better and grow our business in Australia and Southeast Asia", says Mikko Mattila, the CEO of Robit. "As Robit is a renowned manufacturer of quality drilling products with an extensive global distribution network, they will be able to service Ausdrill's drill consumable needs into the future", says Ron Sayers, the Managing Director of Ausdrill Ltd.
(Note. All the figures are based on the latest fiscal year: Robit FY2015, DTA FY2014/2015.)
ROBIT PLC
Harri Sjöholm, Chairman
Mikko Mattila, CEO
Further information:
Robit Plc
Harri Sjöholm, Chairman
+358 400 622 092
Mikko Mattila, CEO
+358 40 736 7001
Skandinaviska Enskilda Banken AB (publ), Helsinki branch acts as the Company's Certified Advisor.
Tel. +358 9 616 28 101
Robit is a Finnish company selling and servicing global customers in drilling consumables for applications in tunneling, geothermal heating and cooling, construction, and mining industries. The company's business is divided into Top Hammer, Down the Hole and Digital Services business units. The company has eight own offices and active sales networks in 115 countries. The company has production in Finland and South Korea. The company is listed in Nasdaq Helsinki Ltd's First North Finland marketplace with trading code ROBIT. For more information, see www.robit.fi.
Distribution:
Nasdaq Helsinki Ltd
Key media
Appendix: DTA-Robit Key Facts.
