The Brisbane office of Dibbs Abbott Stillman acted for leading mining industry service provider Huddy’s in the recent $250 million sale of its 100 per cent interest in mining services businesses Norbre Pty Ltd and Huddy’s Plant Hire Pty Ltd.
The purchaser, listed diversified mining services company Industrea Limited (IDL), was represented by Deacons.
Mount Isa-based Huddy’s is run by Graham and Linda Huddy, who established their firm in 1982, and have agreed to sell their Mount Isa-based mining contracting firm to Industrea for $250 million.
The Huddys will get an upfront payment of $150 million. Huddy’s, which specialises in mining and earth-moving services, equipment hire and civil contracting services, was acquired by IDL for a total consideration of $250 million, plus $85 million in assumed hire purchase liabilities.
About $140 million of the purchase price was represented by tangible assets, including land, buildings, plant and machinery.
The Dibbs Abbott Stillman team acting for the vendor included partner Derek Sutherland, senior associate Alexa Shepherd, who was the transaction manager for the deal, and solicitor Kelly Newton.
Deacons’ representatives acting for IDL included leading M&A partner Shaun Clyne and senior associate Helen Paul.
Commenting on the transaction, Dibbs Abbott Stillman partner Sutherland said: “Graham and Linda Huddy [achieved] a substantial purchase price in this significant transaction. The actual process of the transaction was conducted very smoothly, for a deal of this size and complexity, with completion occurring over two days.”
Alexa Shepherd, managing the transaction for Dibbs Abbott Stillman Lawyers, said the deal is indicative of the strength of the wider mining industry,
“Certainly, the positive economic climate currently enjoyed by the Australian mining industry in general contributed towards making Huddy’s businesses very attractive to IDL,” Shepherd said.
“Adding Huddy’s businesses to its portfolio allows the acquirer to diversify its holdings, geographically and in terms of resources markets covered and type of revenue streams generated,” she said.
“However, Huddy’s own intrinsic strength, reputation and track record were all major factors in its ability to command such a strong price. We understand IDL will be retaining Huddy’s senior management team, which we see as a clear benefit to the business going forward.
“The businesses’ former owners have also committed to long-term contracts to remain with the company and plan to take a significant part of the sale proceeds in IDL shares,” said Shepherd.