The Jeminex Group, a leading Australian provider of industrial components to the resources sector, today announced its eighth acquisition for the 2007 calendar year, having acquired drilling and blasting service provider Addrill Group for an undisclosed sum.
The Jeminex Group is rapidly building its portfolio of businesses that spans all parts of the industrial consumables value chain as the group prepares to bring the company to market in 2008. With the acquisition of Addrill, the Jeminex Group now generates annual revenues of almost $247 million.
The Addrill Group is based in NSW and provides drilling, blasting and other related services to a diverse customer base including the mining, civil construction and quarry sectors. Addrill Group provides services including blast-hole drilling, rock blasting, environmental monitoring, blast design and survey.
Addrill generated strong revenues in the year to 30 June 2007, with EBIT and revenue growing over 35% during the FY07.
This growth has largely stemmed from the strict application of the Addrill business model which includes investment in training, the creation of a multi-skilled workforce and the vertical integration of services to provide a complete design, drill and blast package to customers.
Addrill Group’s customers predominantly consist of “blue chip” resource and construction sector companies including Leighton Contractors, Boral Construction Materials, Baulderstone Hornibrook and Thiess Pty Ltd.
Addrill’s revenue profile for 2008 has been enhanced by the group recently winning a large construction contract with Thiess, ongoing resource infrastructure projects and continuing demand in the housing and construction sectors due to growth in the Australian resources sector. Further the Addrill Group is positioned to continue to take advantage of the continuing demand for coal production in the Hunter Valley, Gunnedah and Central NSW coal basins.
Jeminex Chief Executive Officer, Mark Allison, said that Addrill is a profitable business and one that attracted Jeminex based on the group’s highly experienced staff and management.
“Addrill is a business with exceptional growth potential that we are confident will be realised and enhanced by the Jeminex Group.”
“The business is a complimentary fit within our Group’s drilling and blasting platform and represents an opportunity to drive further synergy benefits particularly with Jeminex-owned Impact Drilling,” Mr Allison said.
“The acquisition of Addrill will also significantly strengthen and enhance Jeminex’s network coverage throughout eastern Australia.”
“We are well on track to building a diversified industrial group and bringing the company to market in 2008.”
“We look forward to welcoming Addrill and its employees, suppliers and customers to the Jeminex Group,” Mr Allison said.