The deal covers JS Mining’s global mineral processing consumables business, bar Africa. JS Mining supplies screening and separation products to the mining and quarrying industry in Australia, North and South America and India.

JS Mining, which employs 185 people, has forecast 2010 revenue of $A52 million, with earnings before interest and tax of $6 million.

Ludowici said the acquisition provided synergy potential as the two companies operated in common regions and markets, and it would open up new commodity markets.

The acquisition is expected to close December 31.

Ludowici will fund the deal with $18.5 million in cash and the issue of 2.5 million shares at $3 a share.

The cash component will be funded by a capital raising via an institutional placement and share purchase plan, raising $9.3 million, with the balance to be funded by debt.

The raising will be priced at $2.65 per share.

Ludowici was trading down 9.37% mid-morning today at $2.90.