Boart Longyear’s MCE business will be teamed with Industrea’s PJ Berriman subsidiary to form a $50 million mining capital division.

For Boart Longyear, the sale of MCE is part of an ongoing strategy to divest non-core business units and focus on becoming the world’s leading integrated drilling services and products manufacturing provider.

Industrea managing director and chief executive Rob Levison said the acquisition offered a number of synergies and would add in excess of $20 million in revenue and $2 million in net profit before tax for Industrea.

“The Boart Longyear business – which makes very large underground vehicles for the likes of longwall roof support and shearer transport – fits very well with our existing PJ Berriman subsidiary which makes smaller equipment to carry people and equipment,” Levison said.

“The newly acquired business has already sold into the dynamic Chinese market and future China distribution will be directed through Industrea’s Wadam business.”

The employees currently employed by MCE will also transfer with the business to Industrea.

In the past two years, Industrea has acquired Advanced Mining Technologies, Wadam Industries and PJ Berriman, and says another attractive takeover target is currently being considered.