Orica is closing the “geospatial gap” in its mining technology portfolio – foreshadowed in last week’s investor day presentations by senior executives – with the A$350 million (US$240m) acquisition of 10-year-old Australian firm, Axis Mining Technology. A $260m upfront payment is said to be 11.8-times Axis’ forecast FY22 earnings.
The deal is nominally due to close in October this year and Orica said Axis was expected to be earnings-per-share accretive in the first full year of ownership and generate return on net assets (RONA) in line with Orica’s 10-12% guidance.
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