A $48 million deal between an underground mining contractor and Australasian resources company will grow the capability and scale of underground mining opportunities.
Macmahon Holdings is buying GBF Underground Mining Group for the amount, plus a further two earn-out payments subject to GBF achieving agreed performance hurdles in the next two financial years.
Macmahon was attracted to GBF since it has found a significant amount of underground opportunities with both current and potential clients.
“With GBF we have the opportunity to achieve meaningful scale in our underground contracting business, which is a key pillar in our strategy of becoming a leading mining contractor that can service clients through the life cycle of their mining operations,” Macmahon chief executive Michael Finnegan said in a public statement.
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Macmahon promises to retain GBF’s “brand and key personnel” and said GBF’s capabilities and strong client relationships will be fully integrated into Macmahon’s underground business. The future of the target company’s 450 workers is unknown.
GBF founders Michael Foulds and Ross Graham will continue to work for the business.
“We are excited to join the Macmahon team and are confident this acquisition will create a strong group that will benefit our current clients and unlock new contract opportunities,” Foulds said.