Scott Technology to buy mine test assets
Scott Technology to buy supplier's assets for less than $1.5 million
July 28 (BusinessDesk) - Scott Technology says it will pay less than $1.5 million for the assets of a key supplier which will immediately contribute positively to earnings.
The Auckland-based supplier manufactures gold reference materials used in testing mining samples for Scott's Rocklabs division, which supplies automated laboratory equipment to the mining industry. Most of Rocklabs' output is exported.
Scott, which also manufactures production lines for appliances manufacturers globally and has joint ventures with Silver Fern Farms and an Australian beef processor to develop meat processing technology, says the price paid will depend on due diligence and the purchase is expected to be completed on October 1.
“The directors see benefit in vertically integrating the supply chain within our growing mining and minerals laboratory business,” says chairman Stuart McLauchlan.
Scott shares last traded at $1.16, giving the company a $36.3 million market capitalisation.