Irish engineering group Mincon has announced the acquisition of Finnish company Lehti for €8 million.
Mincon, which specialises in the design, manufacture, sale and servicing of rock drilling tools and other products, said the deal would further enhance its manufacturing capability in the geotechnical and construction market.
The acquisition of Lehti follows on from the acquisition of PPV Oy in 2017, which became a key part of its engineering hub in Mincon Nordic, focusing on accessing those same markets.
Following the acquisition, the Lehti business will be fully combined into Mincon Nordic operations.
The significant growth Mincon Nordic has experienced in the geotechnical market has resulted in Lehti becoming a key manufacturing partner to Mincon.
Mincon accounted for about €9 million of the projected €13 million turnover achieved by Lehti during 2019.
The projected earnings before interest, taxes, depreciation, and amortisation of Lehti for the calendar year 2019 is about €2.2 million.
Mincon said the partnership with Lehti has enabled it to win and supply significant infrastructure projects in North America, Scandinavia, Asia and Russia.
The cash consideration for the acquisition is €8 million, with €7 million to be paid on completion and a further €500,000 payable in April 2020 and the final payment of €500,000 in April 2021.
Mincon chief executive Joe Purcell said: "This acquisition means that Mincon Nordic enters 2020 with the momentum provided by the contracts which we successfully won in 2019 and with superb reference sites for Mincon geotechnical products manufactured by Lehti.
“We believe this acquisition will leave Mincon well placed to further expand in the attractive geotechnical market worldwide.”
