Finance, Mining Services, News

Mastermyne secures Pybar takeover

hard rock mining

Mastermyne Group has agreed to acquire Pybar Mining Services to enhance its exposure to the hard rock mining services market.

The company stated Pybar has an enterprise value of $99 million with an equity purchase price of $47 million after debt items are considered.

Mastermyne will pay $23.5 million to acquire Pybar, with half payable on completion of the transaction with the remaining amount due on the first anniversary of the completion.

“In line with our stated hard rock growth strategy, the Pybar Mining Services Acquisition is an exciting opportunity for Mastermyne to accelerate growth and become a leading national mining services organisation with material scale,” Mastermyne managing director and chief executive officer Tony Caruso said.

“The Pybar Acquisition is highly complementary to Mastermyne’s existing underground business and expands the combined group’s addressable markets to support ongoing growth, in addition to increasing the earnings resilience of the group by diversifying our commodity exposure.

“With this acquisition we are building a diversified underground mining services business providing specialised underground services directly linked to production.”

Pybar will increase the operating scale of Mastermyne, enhance its hard rock mining skills, increases commodity cycle resilience and expands its client base.

For Mastermyne shareholders, the acquisition will deliver 21 per cent earnings per share on a 2021-22 financial year basis.

The transaction will result in Pybar vendors becoming shareholders in Mastermyne, owning around $23.2 million shares in total.

“We are very excited to be joining the Mastermyne group and working with the Mastermyne team to continue to grow the Pybar business,” Pybar executive chairman Paul Rouse said.

“We view this as a unique opportunity to bring two quality businesses together, that are highly complementary to one another, and to accelerate the opportunities that lay ahead of us.

“This acquisition will be value adding for our management, our workforce and our clients and I look forward to joining the board”.

Previous ArticleNext Article
Send this to a friend