AI assistant
IMDEX LIMITED — M&A Activity 2011
Mar 21, 2011
65119_rns_2011-03-21_a02f7cdf-6e74-4091-8509-ac33200b968b.pdf
M&A Activity
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22 March 2011
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Company Announcements O f fice ASX Limited Exchange Centre 20 Bridge Street SYDNEY NSW 2001
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Dear Sir/Madam
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Imdex completes acquisition of Mud-Data
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Attached is an announce m ent in relation to the above mentioned subj e ct for release to the market.
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Yours faithfully Imdex Limited
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Paul Evans Company Secretary
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22 March 2011
ASX and Media Announcement
Imdex completes acquisition of Mud-Data
Imdex Limited (Imdex; ASX: IMD) is pleased to announce that it has executed a Sale & Purchase Agreement to acquire Mud-Data GmbH and Mud-Data-Rom S.R.L. (Mud-Data), a drilling fluids and equipment supplier to the oil & gas and geothermal markets in Europe.
Bernie Ridgeway, Managing Director of Imdex said that there was strong strategic rationale for the acquisition.
“The acquisition of Mud-Data is a strategic acquisition with strong synergies and compelling financial logic. It will substantially increase Imdex’s footprint in Europe, a market which has very attractive growth opportunities.
“The acquisition is complementary to our existing drilling fluids & chemicals business. It will deliver an expanded product range, excellent capabilities and an enhanced exposure to the oil & gas and geothermal industries in Germany and neighboring countries.
“Mud-Data will also provide a potential cost effective design and manufacturing base for AMC’s solids control technology, furthering Imdex’s goal to become a leading provider of solids control equipment globally.
“We expect Mud-Data to be a significant contributor to Imdex’s revenue, with the acquisition to be earnings accretive in FY12,” said Mr Ridgeway.
Acquisition cost
The potential acquisition of Mud-Data was announced on 17 December 2010. Following completion of Imdex’s due diligence, the purchase consideration was amended to the following:
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€1.3 million in cash on settlement;
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A further €3.7 million in cash and shares, conditional on certain operational milestones being achieved; and
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A conditional earn-out equivalent to 1.065% of certain contract revenue of Mud-Data GmbH in the financial years 2011-2015, inclusive.
The acquisition is funded from existing cash resources.
Earnings accretive
The acquisition of Mud-Data is expected to be earnings accretive in FY12 with the business estimated to generate A$12-15 million in revenue at a 20% EBIT margin. There will be minimal profit contribution in FY11.
About Imdex
Imdex is a Perth based public company listed on the Australian Securities Exchange, whose core business is the supply of quality drilling fluids and chemicals and leading down hole instrumentation in Australia and internationally to the oil & gas, mining, water well, horizontal directional drilling and civil industries
For further information, please contact:
Bernie Ridgeway , Managing Director; Paul Evans , Chief Financial Officer and Company Secretary +61 (0)8 9445 4010
IMD1003.60617.1
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