SYDNEY: Macmahon Holdings Limited has executed a binding agreement to acquire 100% of GF Holdings (WA) Pty Ltd and its subsidiaries (collectively referred to as the GBF Underground Mining Group)(GBF). [the_ad id=”31605″]The purchase price will comprise an upfront component reflecting an enterprise value of circa $48 million, and two further earn-out payments which are subject to GBF achieving agreed performance hurdles in the next two financial years.
The acquisition of GBF is consistent with Macmahon’s strategy of growing capability and scale in its underground division to capitalise on the significant level of underground opportunities that Macmahon is seeing with its current and potential clients.
The $48 million upfront component of the purchase price will be funded by cash and the assumption of GBF’s finance lease debt.
Macmahon Chief Executive Officer Michael Finnegan said GBF’s capability and track record, combined with Macmahon’s financial strength and client reach, would give it a strong platform to compete for upcoming underground mining opportunities.