PPK GROUP LIMITED — M&A Activity 2014

Dec 9, 2014

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ASX ANNOUNCEMENT

FOR IMMEDIATE RELEASE TO THE MARKET

PPK Group Limited – ASX Code: PPK

Wednesday 10 December 2014

Acquisition of Firefly International Completed

PPK Group Limited (PPK) is pleased to announce that it has now completed the acquisition of the business and assets of Firefly international for $1.86 million.

Firefly sells, services and supports a range of drilling, boring, bolting and other equipment to the underground coal mining industry. The company also markets a wide range of mining consumables along with offering a full range of hire equipment.

Having completed the acquisition, PPK plans to combine Firefly with its existing Rambor roof bolting business.

1.   Both the Rambor and Firefly brands will be retained. 
   

2.  The full suite of Rambor and Firefly product ranges will also be retained though, subject to market demand, PPK anticipates that there will be future opportunities to rationalise the product range. 
   

3.  A manufacture and assembly and major maintenance centre for all Rambor and Firefly products will be established at Firefly’s current premises in Mt Thorley. 
   

4. The sales, service, hire/rental, parts and inventory centre for the Hunter Valley will be located at Mt Thorley and for the Illawarra region will be located at PPK’s new Port Kembla facility. 
   

5. The existing Rambor centre in Nowra will close at some stage in 2015.  A number of Nowra based positions will become redundant.  Detailed plans will be communicated to impacted employees when fully determined. 
   

PPK Executive Chairman Robin Levison said:

“Acquiring Firefly and combining it with Rambor continues PPK’s commitment to offering quality fit-for-purpose products and services to the underground high-gas coal mining industry. Combining these two excellent businesses offers us the best opportunity to invest in and grow both Rambor and Firefly in what is currently a most challenging market”.

For further information contact:

Robin Levison Executive Chairman Tel: (07) 3054 4500

Peter Barker Chief Financial Officer Tel: (07) 3054 4500

PPK GROUP LIMITED

ABN: 65 003 964 181

Level 27, 10 Eagle St, Brisbane QLD 4000 GPO Box 754, Brisbane Qld 4001 Tel: +61 7 3054 4500 Fax: +61 7 3054 4599