Bradken Ltd., an Australian manufacturer of iron and steel castings for mining, construction, rail, and heavy industrial activities, has accepted a takeover offer from Hitachi Construction Machinery Co., for which it supplies various component parts for mining equipment. The estimated $5207.2-million offer (A$688.5 million) is available to Bradken shareholders until February 10, 2017.
The offer requires Hitachi Construction to collect more than 50% of Bradken’s shares and secure relevant regulatory approvals. It has agreed to provide Bradken with a $340 million (A$450 million) credit line to repay private placement notes it has issued.
“(The proposed takeover) lets Bradken, which has a proud history in mining and industrial services, join with one of the world’s largest machinery companies,” according to chairman Phil Arnall, in an October statement.
Bradken operates steel foundries, machine shops, and fabricating operations in Australia, Canada, China, Great Britain, India, and the U.S. The North American foundries, each with dedicated machine shops, include Bradken-Amite in Amite, LA; Bradken-Atchison/St. Joe, in Atchison, KS; Bradken-Atlas, Tacoma, WA; and Bradken-London, London, ON.
Hitachi Construction Machinery, a part of the broader Hitachi Group, manufactures excavators, front- and rear loaders, recycling equipment, among other heavy equipment.