BIS Industries buys Powertrans for USD30 million
Mining logistics company BIS Industries is acquiring industrial transport business Powertrans in a deal valued at USD30 million. The debt-funded acquisition deal will be finalized in January. This was according to a report published by Business Spectator.
BIS Industries, which is worth USD1.5 billion, is expected to be listed on the Australian Securities Exchange in December. Lead managers Goldman Sachs, Merrill Lynch, and UBS will facilitate the transaction. Sources close to BIS said the share price will range from 10.9 to 13 times the net profit before amortization, said the report.
Ian Lynass, chief executive of BIS, said of the deal: "Acquiring this business enhances the off-road load and haul services that we can offer to our customers. It will also deliver ongoing financial benefits, such as the opportunity to drive a notable reduction in the production and capital costs of these key assets."
The transaction would give BIS ownership of the dual-powered road trains (DPRT) technology used in BIS' hauling service, according to Powertrans. The mining logistics firm would pay USD20 million for Powertans. Another USD10 million would be allotted for work-in-production and inventory, Business Spectator reported.
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