Macmahon Holdings will acquire key contracts from Emeco Holdings (ASX:EHL) related to the Pit n Portal underground services business.
The move aligns with Macmahon's strategic focus on growing its underground mining sector through capital-light solutions.
The acquisition, valued at approximately $10 million, is set to enhance Macmahon's order book by over $140 million. At the same time, the strategic rental partnership is expected to foster flexibility and generate free cash flow.
The deal includes PnP contracts, site infrastructure assets, inventory, light vehicles, and around 260 skilled employees.
The transaction, slated for completion in early 2024, is structured to maintain a neutral cash position through an asset sale arrangement.