SciDev have made a strategic $1.9M acquisition of ProSol Australia, which is a bespoke engineering and chemistry company that provides services to the mining and water treatment industries in NSW.
Why is it a Strategic Acquistion?
The target market of ProSol Australia, which is the provision of tailings engineering and process chemistry to mining and water treatment industries in NSW, is also a target market for SciDev's OptiFlox technology. Thus, this will lead to greater market penetration for SciDev. In addition, SciDev is retaining key staff from the ProSol Australia business. This includes ProSol Australia Director Ben Gill with 18 years’ experience who will be joining the SciDev management team and engineer Terry McHugh who will join as a Technical Account Manager.
What are the benefits?
Not only will the ProSol Australia staff become a valuable part of the SciDev team, SciDev will also be able to leverage Nuoer Group's manufacturing capabilities to improve ProSol Australia's profit margins. The ProSol Australia business is expected to generate between A$2-$4m in revenues per year.
What were the terms?
The acquisition was funded via a combination of 55% cash and 45% ordinary shares across several tranches, which is shown below: