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Foundry Daily News

Australia - Bradken to buy rest of AmeriCastTech

Mining and freight services company Bradken Ltd has agreed to acquire the 83 per cent of AmeriCast Technologies Inc that it does not already own for $114 million.

An additional $21 million earn-out is payable over the next two years, subject to earnings hurdles.

AmeriCast is an American manufacturer of large steel castings to energy and resources markets.

Bradken is buying the stake from funds managed by Castle Harlan and AmeriCast management.

The purchase price implies an enterprise value of $258 million and represents 5.2 pro-forma normalised fiscal 2008 earnings before interest, tax, depreciation and amortisation.

Bradken said the acquisition would be funded through a fully underwritten institutional placement of $110 million.

Another $2 million placement will be offered to AmeriCast management and Bradken directors at the institutional placement price.

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