Mincon buys out Finnish manufacturing partner Lehti
Ireland-based rock drilling engineering company Mincon announced the acquisition of Lehti Group of Finland on Monday, in a bid to further enhance its manufacturing capability in the geotechnical and construction market.
The AIM-traded firm said the acquisition of Lehti followed the acquisition of PPV in 2017, which became a “key part” of its engineering hub in Mincon Nordic, focusing on accessing the geotechnical and construction markets.
Following the acquisition, the Lehti business would be fully combined into Mincon Nordic operations.
The board said the “significant” growth Mincon Nordic had experienced in the geotechnical market had resulted in Lehti becoming one of its key manufacturing partners, with Mincon accounting for around €9m (£7.69m) of the projected €13m turnover it achieved during 2019.
It said the projected EBITDA of Lehti for the calendar year 2019 was around €2.2m.
The partnership with Lehti had enabled Mincon to win and supply significant infrastructure projects in North America, Scandinavia, Asia and Russia.
Mincon said the cash consideration for the acquisition was €8m, with €7m to be paid on completion and a further €0.5m payable in April, and a final payment of €0.5m due in April 2021.
“This acquisition means that Mincon Nordic enters 2020 with the momentum provided by the contracts which we successfully won in 2019 and with superb reference sites for Mincon geotechnical products manufactured by Lehti,” said chief executive officer Joe Purcell.
“We believe this acquisition will leave Mincon well placed to further expand in the attractive geotechnical market worldwide.”