Mining services company Ausdrill Limited has agreed to sell its Drilling Tools Australia (DTA) business to Robit Plc for $66 million.
The company’s Managing Director Ron Sayers said the sale was in line with Ausdrill’s strategy to refocus on its core competencies.
“The sale of DTA provides Ausdrill with the opportunity to crystallise considerable value on a portion of the Group’s earnings, generating a profit after tax in order of $35 million and allowing us to further pay down debt,” Mr Sayers said.
Robit Plc is a Finnish manufacturer of high quality top hammer products for rock drilling and casing systems for ground drilling. The company exports its range of products to over 200 countries worldwide.
“This is an exciting development in the rationalisation of our sector. As Robit is a renowned manufacturer of quality drilling products with an extensive global distribution network, they will be able to service Ausdrill’s drill consumable needs into the future,” Mr Sayers added.
The transaction includes DTA’s drill manufacturing and distribution business – which generates annual revenue of approximately $35 million – but excludes the net assets of DTA’s oil and gas and spare parts business, which will be transitioned to other divisions of the Ausdrill Group.
According to Mr Sayers, DTA will continue manufacturing operations at its facility in Canning Vale, WA, under a five year leasing agreement, and will also retain the services of all current employees.
“I would like to take this opportunity to thank all of our employees for their loyalty and service over many years,” he said.
“We wish them and Robit every future success and we expect the relationship between DTA and Ausdrill to remain strong going forward.”