DSI Underground Australia has secured an agreement to acquire privately-owned manufacturer, Fero Group.
The acquisition of Fero will add galvanising and mesh manufacturing processes into DSI Underground’s manufacturing capability.
DSI underground, which employs 300 people, supplies high-quality Australian-made strata reinforcement and ground support products essential to safety and efficiency in the underground mining, infrastructure and construction sectors.
Fero Group is a national steel manufacturing and anti-corrosion service company and provides products and services to the oil & gas, mining, civil, marine, commercial, industrial and residential industries.
The company has manufacturing operations in Kewdale, Western Australia and Narangba, Queensland.
Perth’s Franco family, the owners of Fero, have agreed to invest part of the sale proceeds into DSI Underground parent company, DSI Underground Holdings, and will become a major shareholder in the group’s mining business.
DSI Underground International chief executive Michael Reich said the aim of the deal was to provide customers with a broader range of products, allow for continued R&D investment, and adapt to the digitalisation of products and services.
“I am very pleased that the owners of Fero, the Franco family, will become shareholders in DSI Underground and Fero’s managing director, Michael Franco, will continue to support DSI Underground at an operational level and as an advisor to the global DSI Underground board,” Reich said.
Fero MD Michael Franco added the Franco family was “extremely proud” of the entire Fero team and the leading business they built together.
“We now look forward to working closely with the DSI Underground team to support the continued growth of the combined businesses. Personally, I look forward to becoming part of the DSI Underground global team,” Franco said.
Terms of the acquisition have not been disclosed and the transaction is conditional on regulatory approval.