Qube adds mining services strength with $135m LCR acquisition

An LCR fleet at Blackwater. Image: LCR Group

Logistics specialist Qube Holdings is expanding its reach into mining and oil and gas with the purchase of services provider LCR Group.

Qube, best known for its bulk and materials handling services for import and export supply chains, plans to strengthen its offering in the resources sector through the $135 million acquisition.

“The acquisition of LCR is significant as it provides Qube the ability to deliver enhanced broad spectrum mining and industrial services to its existing and future customers,” Qube chief operating officer Paul Digney said.

“LCR is well known for providing innovative lift and shift materials handling solutions across Australia and (Papua New Guinea).”

LCR’s Queensland mining projects include works for BHP Mitsubishi Alliance (BMA), Jellinbah Resources and Yancoal.

The company has provided cranage, transport and labour services at BMA’s Blackwater coal mine since 2015, including transport of fixed and mobile plant and other heavy loads for relocation and maintenance within the Bowen Basin region.

LCR chief executive and managing director Col Partington said the alignment between Qube and LCR would drive the company’s goal to increase its “presence and customer focus both in Australia and internationally”.

He added the acquisition provided a great opportunity to be part of a growing national logistics business.

Qube reported underlying revenue of $859.5 million and net profit after tax of $64.4 million in its first half 2019 results in February.

The Sydney-based company stated the LCR acquisition was not expected to have a material impact on its pre-amortisation net profit after tax in future.

To keep up to date with Australian Mining, subscribe to our free email newsletters delivered straight to your inbox. Click here.