Mastermyne Group will be renamed as Metarock Group at closing, and will be established as the brand for the combined business


Mastermyne to acquire PYBAR mining. (Credit: Herbert Aust from Pixabay.)

Mastermyne has agreed to acquire PYBAR Holdings, the entity that owns PYBAR Mining Services, in a cash and share transaction worth A$47m ($34.7m).

The deal implies an enterprise value of A$99m ($73.2m) for PYBAR.

The cash consideration for the acquisition is A$23.5m ($17.3m), with A$11.75m ($8.7m) to be paid upon closing of the transaction, while the remaining A$11.75m ($8.7m) to be paid one year after the completion of the transaction.

As part of the transaction, Mastermyne Group is planned to be renamed as Metarock Group, and will be established as the brand for the combined business.

Mastermyne managing director and CEO Tony Caruso said: “In line with our stated hard rock growth strategy, the PYBAR Mining Services Acquisition is an exciting opportunity for Mastermyne to accelerate growth and become a leading national mining services organisation with material scale.

“The PYBAR Acquisition is highly complementary to Mastermyne’s existing underground business and expands the combined group’s addressable markets to support ongoing growth, in addition to increasing the earnings resilience of the group by diversifying our commodity exposure.

“With this acquisition we are building a diversified underground mining services business providing specialised underground services directly linked to production.”

Upon closing of the transaction, PYBAR will continue its operations as an independent business unit within the Mastermyne Group, led by the existing management team.

The company’s vendors are expected to become shareholders in Mastermyne with nearly 23.2 million shares.

Mastermyne said that the acquisition would advance its growth strategy of expanding into the adjacent hard rock segment.

The transaction would provide with an opportunity to diversify into base metals and commodities outside of metallurgical coal, while materially increasing its operating scale.

Established in 1993, PYBAR Mining Services is a provider of metalliferous underground hard rock mining services in Australia.

It offers mine development, raiseboring, mine production, shotcreting, and cable bolting & production drilling services, with a skilled workforce of more than 1,100 people.

PYBAR executive chairman Paul Rouse said: “We are very excited to be joining the Mastermyne group and working with the Mastermyne team to continue to grow the PYBAR business.

“We view this as a unique opportunity to bring two quality businesses together, that are highly complementary to one another, and to accelerate the opportunities that lay ahead of us.

“This acquisition will be value adding for our management, our workforce and our clients and I look forward to joining the board.”