Bradken acquires two wear plate companies

Bradken has acquired Norcast and Australian and Overseas Alloy (AOA) for $222 million.

Both companies produce differentiated wear parts for mining.

According to Bradken managing director Brian Hodges, “the acquisitions are in line with Bradken’s strategy of globalising its products and building a presence in the world’s major mining regions.

"Norcast provides operations in Canada and leading position in the supply of mill liners. AOA increases out presence in the Australian wear plate market.”

The acquisitions are expected to add $28 million to Bradken’s EBITDA in 2011/12, and will be funded from cash and debt facilities.

It bought Norcast Wear Solutions for $202 million, with the deal to be finalised by 12 July.

This acquisition is forecast to add around $75 million of sales and $30 million of gross margin in 2011/12.

The Norcast acquisition included Swanmet, a Malaysian foundry group bought by Norcast in March last year.

Swanmet manufactures wear parts such as crusher liners and ground engaging tools.

Bradken bought AOA, which is based in Wollongong, for $20 million.

AOA also produces wear plates for the mining industry and is expected to generate $9 million in sales and $6 million of gross margin for the financial year.

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