. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . inDustry neWs
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . inDustry neWs
Bradken Buys Two Plants, Raises Capital to Fund Growth
Bradken Ltd., Newcastle, Australia, announced it has
made two acquisitions for almost $240 million. The an- nouncement came just over a month after the company announced an initiative to raise $100 million to establish a metalcasting facility in Xuzhou, China, and fund two U.S. foundry expansions announced earlier this year. The international metalcasting conglomerate has entered
into a binding agreement to acquire Norcast Wear Solutions Inc., Toronto, Canada, and Australian and Overseas Alloys Pty. Ltd., Wollongong, Australia. The Norcast acquisition is expected to be finalized by
July 12. The manufacturer of cast steel mill liners for the global mining market maintains its main production facility in Mont Joli, Canada. The company’s Canadian operations and its North and South American customers will be man- aged by Bradken’s U.S. Resources Business, a part of the Engineered Products Division. The company is expected to add approximately $80.5 million of sales to Bradken’s portfolio. The acquisition includes Swanmet, a Malaysian foundry group acquired by Norcast in March 2010. Swanmet currently manufactures and sells wear parts to the mining and energy markets, including Australia. Australian and Overseas Alloys produces wear plate
products for the mining industry. The business is expected to complement Bradken’s current fixed plant wear products business, providing a presence on the east coast of Australia. The business will be managed by Bradken’s Fixed Plant Busi- ness, a part of the Mining Products Division, and is expected to add approximately $9.7 million of sales in 2011-12. “The acquisitions are in line with Bradken’s strategy of globalizing its consumable products businesses and building a substantial presence in the world’s major mining regions,” said Bradken Managing Director Brian Hodges. “Norcast provides world class manufacturing operations in Canada and a leading position in the global supply of mill liners. [Australian and Overseas Alloys] increases our presence in the Australian wear plate market.” In late May, the publicly traded company said it would undertake a placement of approximately 18.7 million new ordinary shares to raise up to $162 million. Bradken said it intended to use the proceeds to fund $100 million of growth capital, including launching a metalcasting facility in Xuzhou, China, and expanding two U.S. plants, $20 million to lower costs and improve margins and $38 million to continue conducting business as usual. In February, Bradken announced it would spend $18.1
million to expand the capabilities and capacity of its Amite, La., metalcasting facility and $23 million to expand the cast- ing and inspection areas of its Tacoma, Wash., plant. According to the terms of the share-placement plan,
Bradken said its eligible shareholders may subscribe for shares at the issue price, up to a value of $10,000. The price of the shares issued is expected to be equal to the company’s existing ordinary shares. Bradken has requested a trading halt to be placed on its shares until the placement has been completed.
METAL 10 Metal Casting Design & PurChasing July/august 2011
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60