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KKR-owned Bis Industries acquires Powertrans for $27m

  • Mirzaan Jamwal
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KKR-held Australian mining logistics company Bis Industries is to acquire mining haulage systems operator Powertrans for A$30 million ($27.46 million).

The effective purchase price is A$20 million, plus an additional A$10 million for inventory and work-in-production, which is expected to be utilised within the operations of Bis or otherwise monetised in the next 12 months, the company said in a release. The transaction will be funded from existing available debt facilities.

Powertrans is a key supplier of the dual-powered road trains (DPRT) used in Bis' off-road load and haul service, and the deal is expected to deliver ongoing earnings benefits via a reduction in capital cost of DPRTs and lower annual repair and maintenance costs.

"Acquiring this business enhances the off-road load and haul services that we can offer to our customers," said Ian Lynass, CEO of Bis Industries. It will also deliver cost efficiencies by complementing existing strategic sourcing initiatives for the business.

Transition of control of Powertrans to Bis Industries is expected to occur in January 2014.

KKR formed Bis in 2006 after paying A$1.83 billion for Brambles Industrial Services and Cleanaway Australia. The latter asset was sold to Transpacific Industries the following year. Bis is expected to list on the Australian Securities Exchange in December.

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