Orica expands footprint with Axis acquisition
Wednesday, October 12th, 2022
Mining and infrastructure solutions provider Orica has finalised its $260 million acquisition of Axis Mining Technology.
Orica now owns 100 per cent of the share capital of the entities that own Axis.
Axis is a leader in the design, development, and manufacture of specialised geospatial tools and instruments for the mining industry.
“We are extremely pleased to welcome Axis into Orica,” Orica managing direction and chief executive officer Sanjeev Gandhi said. “This strategic acquisition further strengthens our existing digital solutions platform and expands our orebody intelligence business.”
The acquisition, which was first announced on August 3, will present compelling growth opportunities across the mining value chain. These opportunities will come from combining Orica’s and Axis’ capability with Orica’s global network and footprint.
“Orica’s purpose is to sustainably mobilise the earth’s resources and achieving this starts with a better understanding of the orebody at the start of the mining value chain,” Gandhi said.
“Axis’ differentiated geospatial tools and instruments, combined with our existing suite of digital solutions, will provide compelling orebody intelligence to customers and support the delivery of the industry’s first end-to-end solutions platform, from mine to mill.”
Axis’ geospatial technology will also accelerate Orica’s capabilities to support new mineral discoveries required for decarbonisation.
Orica’s broader commodity mix objectives will be complimented by Axis’ gold and copper exposure.
“The integration of Axis’ technology and expertise will accelerate our ability to support our customer’s digital transformation efforts around the world, helping them to operate more efficiently, sustainably and safely,” Gandhi said.
The acquisition (including both upfront consideration and earn-out) and associated costs was funded through the proceeds of a fully underwritten $650 million institutional share placement.
Orica has also undertaken a non-underwritten share purchase plan (SPP) to eligible shareholders in Australia and New Zealand, up to an aggregate cap of $75 million.