MACA acquires fellow contractor

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MACA has acquired Alliance Contracting.

Alliance was formed in 1999, and has a number of contracts in WA including in the Pilbara, Eastern Goldfields, and Mid-West regions.

The two business have history, with MACA executive director Geoff Baker maintaining a long term, minority shareholding in Alliance.

MACA acquired the business for approximately $5 million in cash, and will be funded by existing cash resources.

Alliance has net tangible assets of around $6 million, with hire purchase and debt facilities equalling $10 million.

According to MACA, this acquisition will open new doors for the contract, providing access to Alliance’s working relationships with Metals X at the Central Murchinson project and with Silver Lake Resources at the Santa and Lucky Bay projects.

These two existing contracts’ tenures range between three to 19 months and will be serviced utilising plant and equipment currently owned by Alliance and MACA.

MACA will also utilise Alliance’s depots in Karratha and Port Hedland, which provide civil services to local authorities as well as major operators.