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Orica to acquire mining technology company GroundProbe for A$205 million
Orica Limited has entered into an agreement to acquire GP Holdco Pty Ltd from Crescent Capital Partners for A$205 million.
GroundProbe is a global market leader in the provision of critical monitoring and measurement technologies for the mining sector. Its radar and laser based monitoring systems, combined with advanced processing and analytic software, provide mining customers with geotechnical slope stability monitoring for improved mine productivity and safety. It is a profitable business with a proven track record of commercialising technology.
GroundProbe’s technologies are well aligned with Orica’s strategy and customer base and will create direct synergies with existing and planned customer solutions, including Blast IQ™ and Nitro Consult.
Orica CEO, Alberto Calderon, said, “The integration of GroundProbe’s market leading technologies will further consolidate our position as the industry leader in digitally enabled blasting solutions to the mining industry, and strengthen our existing presence in the large and high growth mining and civil monitoring markets.
“We believe the potential for data-driven improvement in the drill and blast component of the mining value chain is significant. By integrating GroundProbe’s capabilities alongside Blast IQ™ and Nitro Consult, we are able to expand the digital solutions we can offer to help customers improve safety, productivity and environmental outcomes,” he said.
The purchase price will be funded in cash from existing debt facilities, and is expected to be earnings per share accretive in the first full financial year of ownership.
The transaction is subject to customary closing conditions and is anticipated to be completed in the first quarter of calendar year 2018.