Bradken Ltd., Newcastle, Australia, announced it has made two acquisitions for a total consideration of almost $240 million.
The international metalcasting conglomerate has entered into a binding agreement to acquire Norcast Wear Solutions Inc., Toronto, Canada, and Australian and Overseas Alloys Pty Ltd., Wollongong, Australia.
The Norcast acquisition is expected to be finalized by July 12. The manufacturer of cast steel mill liners for the global mining market maintains its main production facility in Mont Joli, Canada. The company’s Canadian operations and its North and South American customers will be managed by Bradken’s U.S. Resources Business, a part of the Engineered Products Division. The company is expected to add approximately $80.5 million of sales to Bradken’s portfolio in 2011-12.
The acquisition includes Swanmet, a Malaysian foundry group acquired by Norcast in March 2010. Swanmet currently manufactures and sells wear parts into mining and energy markets, including Australia.
Australian and Overseas Alloys produces a range of wear plate products for the mining industry. The business is expected to complement Bradken’s current fixed plant wear products business, providing a presence on the east coast of Australia. The business will be managed by Bradken’s Fixed Plant Business, a part of the Mining Products Division, and is expected to add approximately $9.7 million of sales in 2011-12.
“The acquisitions are in line with Bradken’s strategy of globalizing its consumable products businesses and building a substantial presence in the world’s major mining regions,” said Bradken Managing Director Brian Hodges. “Norcast provides world class manufacturing operations in Canada and a leading position in the global supply of mill liners. [Australian and Overseas Alloys] increases our presence in the Australian wear plate market and provides strong manufacturing technology.”
Since February, Bradken has announced expansions at two of its U.S.-based metalcasting facilities and the establishment of a new plant in China.
Sourced from Modern Casting
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