Orica, a provider of mining and infrastructure solutions, has signed a binding agreement to purchase 100 per cent of Axis Mining Technology’s share capital for $260 million in cash.
A deferred earn-out payment amounting to a maximum of $90 million is payable based on Axis’ cumulative earnings before interest, taxes, depreciation, and amortization generated from 1 October 2022 to 31 December 2024.
Axis is a leading company in the design, development, and manufacturing of specialised geospatial tools and instruments for the mining industry. The acquisition will bring a valuable addition to Orica’s Digital Solutions platform, positioning the company on the path to becoming the industry’s first integrated end-to-end, mine-to-mill solutions provider.
As part of the transaction agreement and in a bid to ensure seamless integration of the businesses, Axis’ existing management team will enter into new employment agreements with Orica.
Orica will also provide a non-underwritten share purchase plan capped at $75 million to shareholders in Australia and New Zealand.
The balance of funds raised under the equity raising will be used to fund incremental trade working capital requirements in the medium-term as a result of global supply chain dislocations, Orica said in a statement.
“We are extremely pleased to welcome Axis into Orica. This strategic acquisition further strengthens our existing Digital Solutions vertical and expands our Orebody Intelligence portfolio upstream,” said Sanjeev Gandhi, managing director and chief executive at Orica.
“In addition to facilitating the Acquisition, the Equity Raising will allow Orica to fund incremental trade working capital requirements arising as a result of global supply chain dislocations, and also provide additional balance sheet capacity,” he added.
