Imdex Limited (IMD) is pleased to announce that it has executed a Sales and Purchase agreement to acquire Fluidstar Pty Ltd and Ecospin Pty Ltd.
Imdex Managing Director, Bernie Ridgeway, said the acquisitions would consolidate the Company’s position in Australia and the Asia Pacific region in relation to the manufacture and sale of drilling fluids and chemicals, and solids control activities. “Fluidstar is a natural fit for Imdex given the strong alignment of the companies’ products and markets. It’s a strong business that facilitates the further expansion of Imdex’s Drilling Fluids and Chemicals Division. In addition, Fluidstar’s Asia-Pacific focus is complementary to Imdex’s geographic footprint,’ said Mr Ridgeway. “The acquisition of Fluidstar and Ecospin further supports Imdex’s aim to become a significant drilling fluids and chemicals supplier to the mining, and water well industries globally,” said Mr Ridgeway.
Acquisition of Fluidstar and Ecospin is consistent with Imdex’s focused strategy to grow the Company’s core operations. It strengthens Imdex’s market position in the key Asia-Pacific region –Fluidstar is a strong business, with a history of supplying the mining and water well industries in this region. Acquisitions are complementary to Imdex’s Drilling Fluids and Chemicals Division. The Ecospin solids control equipment provides potential additional revenue stream and combined with Imdex’s solids control technology, should allow Imdex to build a strong market position in the surface and underground mining industry. Under the Sale and Purchase agreement, Imdex will pay approximately $12.3 million for Fluidstar and $0.5 million for Ecospin. The acquisition for both will be wholly funded from Imdex’s cash resources and banking facilities.
Fluidstar is focused on manufacturing and marketing drilling fluid systems primarily for the mining and exploration market in the Asia-Pacific region. Ecospin has a solids control system, the subject of a provisional patent. Imdex is a Perth based public company (IMD), whose core business is the supply of drilling fluids and chemicals and down hole instrumentation in Australia and internationally to the oil & gas, mining, water well, horizontal directional drilling and civil industries.
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Tags: IMD, Imdex, Mining Services, New acquisition
