Ausdrill has sold its Drilling Tools Australia (DTA) business to Robit, for $66 million.
Robit is a Finnish manufacturer of drilling products, which exports to more than 100 countries.
The sale follows Ausdrill’s divestment of its DT HiLoad truck tray business to Schlam Engineering earlier this year.
The two divestments are part of Ausdrill’s wider strategy to refocus on its core business.
“The sale of Drilling Tools Australia provides Ausdrill with the opportunity to crystallise considerable value on a portion of the Group’s earnings, generating a profit after tax in the order of $35 million and allowing us to further pay down debt,” Ausdrill managing director Ron Sayers said,
The DTA sale includes its drill bit manufacturing and distribution business, however it will exclude DTA’s oil and gas spare parts business, which will reportedly transition to other Ausdrill divisions.
Ausdrill has also entered into a two and a half year preferred supply agreement with DTA for drill bits moving forward.
DTA will continue manufacturing from its Canning Vale facility in WA under a five year leasing agreement. All employees will shift with the sale.
“This is an exciting development in the rationalisation of our sector,” Sayers said.
“As Robit is a renowned manufacturer of drill products they will be able to service Ausdrill’s drill consumable needs into the future.”