ORH Limited (ORH) advises that it has today entered into Heads of Agreement documentation to purchase the 4 businesses comprising the Enmac Group of Companies. Enmac Mechanical Repairs Pty Ltd repairs earth moving equipment and equipment components for the Mining and Civil construction industries in Western Australia. Enmac Equipment Sales Pty Ltd sells new and used earthmoving equipment, distributing YTO equipment, a Chinese brand to Western Australia. Stronach Consulting Pty Ltd trading as Enmac Labour Hire places skilled maintenance personnel to long and short term positions within the mining and engineering industry in Western Australia. Enmac Truck & Machinery Cleaning (currently trading from a family trust) provides equipment cleaning services for the mining industry on site and in house.
The Enmac Group is a profitable business currently turning over in excess of $2M per annum. With the acquisition of The Enmac Group, ORH will now direct its annual major repairs and maintenance budget for its plant hire division, ORH Contracting Pty Ltd, worth approximately $1.5M per annum to it thereby saving ORH Contracting Pty Ltd approximately $400,000 in cost per annum. The Board of ORH believe that the acquisition will provide substantial opportunities for The Enmac Group to increase sales both organically and via ORH’s existing network of stakeholders. ORH Limited will, purchase the Enmac Group by issuing 4 million shares and 2 million options (expiring on 13 June 2011 at an exercise price of 11.5 cents per option).
Tags: engineering, Mining Services, New acquisition, ORH, ORH Limited
