Bradken shopping spree bolsters share price
SHARES in the Australian mining equipment supplier, Bradken, rose by nearly 4 per cent yesterday after it announced acquisitions which the company says will boost earnings by $28 million.
SHARES in the Australian mining equipment supplier, Bradken, rose by nearly 4 per cent yesterday after it announced acquisitions which the company says will boost earnings by $28 million.Bradken will spend $222 million on the two acquisitions, including $202 million to take over the Canadian company, Norcast, and $20 million on a Wollongong operation, Australian and Overseas Alloys. The news saw the company's shares close 30? up, or 3.77 per cent, at $8.25.It will become the largest global supplier of cast steel mill liners to mining regions through the Norcast takeover, Bradken said in a statement. It would also increase its market share in Australasia, North and South America and Africa."Norcast provides world-class manufacturing operations in Canada and a leading position in the global supply of mill liners," the managing director of Bradken, Brian Hodges, said. "AOA increases our presence in the Australian wear plate market and provides strong manufacturing technology."Mr Hodges expected underlying pre-tax earnings growth in 2010-11 to be towards the middle of an earlier guidance range of 15 to 20 per cent, with 25 to 30 per cent in 2011-12 and net profit growth of 35 to 40 per cent.In May, Bradken acquired Wear Protect Systems and two of its related companies for an initial payment of $13.3 million and an earn-out over two years.