RCR Mining and Heat Treatment form part of the original RCR Tomlinson business. Credit: NRW.

NRW Holdings has signed an agreement with RCR Tomlinson to acquire the assets of RCR Mining and RCR Heat Treatment.

NRW will finance the $10m acquisition from the company’s existing cash reserves.

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RCR Mining and Heat Treatment are part of the original RCR Tomlinson business, which was established 100 years ago.

RCR Mining has primary locations at Welshpool and a plant in Victoria.

It includes the Mining Technologies business that owns intellectual property across various products and processes.

“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.”

An original equipment manufacturer (OEM) and materials handling designer, the business has a product range that includes apron and belt feeders, conveyors, slide gates, stackers, spreaders, fully track- mounted in-pit mining units, sizers, scrubbers and screening plants.

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The facilities of the Heat Treatment business include the stress relieving furnace in Australia.

Together, Mining Technologies and Heat Treatment businesses generated revenue of approximately $110M in FY18.

Under the terms of the acquisition, experienced management, design, manufacturing, service and maintenance teams will join NRW.

NRW managing director and CEO Jules Pemberton said: “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.

“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 acquisition is expected to complete within the next two weeks.