While GE has indicated it could retain IMS as part of its takeover offer, the American giant is more interested in Industrea’s underground coal mining equipment intellectual property.

The Industrea board has negotiated the ability to sell IMS separately, in which case Industrea shareholders will be entitled to receive any net proceeds from the sale above an agreed value in addition to the $1.27 per share offered.

Leighton Holdings subsidiary Thiess and Downer EDI would be possible suitors for the business, which has been a stable performer and cash cow for Industrea as it carried out R&D projects on mining equipment.

Ongoing pressures on wages and consumables such as diesel have so far not impacted on margins for IMS’s contracts with major players such as Xstrata.

IMS reported a strong first half performance for the six months to December 2011 with revenue increasing to $104.8 million compared to $80.5 million for the previous corresponding period and EBITA for that period lifting to $19.5 million from $17.4 million.

In its trading update released last week Industrea reported organic growth had continued in the current half.

“All key contracts have been extended during the period and new equipment that has been deployed is contributing to the increased earnings and revenues,” it said.

IMS’ core activities are mine planning, project supervision, heavy mining equipment hire, trained equipment operator hire, overburden, coal and ore body mining and transportation, and drill and blast planning and activity.

The original contractor company that IMS was formed from was founded in Mount Isa in 1986 and has grown to become a tier two mining services provider. Through its history in the industry, IMS has worked in areas across much of the east coast of Australia in metalliferrous mines and coal, both thermal and coking coal.

The size and depth of the IMS business allows it to provide integrated mining services for a full scale mining operation. “Through a relatively stable permanent workforce IMS is readily adaptable to provide services tailored to any scale of operation,” it says on its website.

“IMS is able to deliver successful outcomes for its customers and staff by focusing on results and the application of mining best practice.

“Through its commitment to maintenance and fleet renewal IMS is able to achieve much higher utilisation rates of its equipment than competitors.”