The acquisition of Pit N Portal this week by Emeco points to a healthy mining industry as we start the new year. The deal worth $72 million sees $62 million cash change hands and $10 million worth of Emeco shares.
It is a highly strategic move by Emeco, that will see it move into the underground sector for the first time. In particular, the Western Australian gold and nickel sector will see the major benefits from this acquisition.
Pit N Portal has grown into a large company over a short period of time and boasts more than 300 employees, mainly based in Western Australia, and a large asset base that boasts over 100 pieces of underground machinery.
Emeco’s move into the underground mining sector will be closely watched by other underground contractors who will be eyeing long-term contracts in the bullish gold sector and the promising rise in nickel’s fortunes.