Back-to-back sell-offs for more RCR Tomlinson businesses
31 January 2019, Written by Business News Australia
Just one day after beleaguered engineering firm RCR Tomlinson (ASX: RCR) sold off its laser cutting business, the now company now under administration has made two more sales.
NRW Holdings (ASX: NWH) has acquired RCR's mining and heat treatment businesses for $10 million.
The two entities form part of the original RCR Tomlinson business established more than a century ago.
McGrathNicol was appointed to oversee the sale and restructuring of RCR Tomlinson's (ASX: RCR) assets in November, after operational issues at its solar farms led to shares being slashed almost in half.
Together, the two businesses employ around 300 people at Welshpool in Western Australia and Bunbury in regional Victoria.
The mining business includes RCR's mining technologies business which owns important intellectual property across a range of products and processes.
Both the mining technologies and heat treatment businesses have a high proportion of their activity in equipment product support and maintenance, with the heat treatment business renowned for its comprehensively equipped facilities and the largest stress relieving furnace in Australia.
Together, the businesses generated around $110 million in revenue during FY18.
NRW's managing director and chief executive officer Jules Pemberton says the two businesses will be quickly integrated into the company, with all employees being kept on.
"This acquisition will allow us to provide incremental services, in line with our strategic objectives to a number of core clients common to both NRW and the RCR businesses to be acquired," says Pemberton.
"In addition, the annuity style income from the maintenance activities of mining technologies and heat treatment will provide a platform to continue to build a broader service offering across an expanded resources and oil and gas client base."
"The intention is to integrate the acquisition, including all 300 employees as quickly as possible with minimum disruption to clients."
Business News Australia
Author: Business News Australia