- SciDev has entered an agreement to purchase ProSol for nearly $2 million
- ProSol provides bespoke tailings engineering and process chemistry to mining and water treatment industries in New South Wales
- The deal is expected to deliver additional revenues of $2 to 4 million per annum from the Hunter Valley coal industry
- SciDev is up 6.25 per cent and is selling shares for 60¢ apiece
SciDev has entered into an agreement to acquire ProSol for $1.9 million.
ProSol provides bespoke tailings engineering and process chemistry to mining and water treatment industries in New South Wales. It has a leading position in the Hunter Valley coal industry with existing relationships with key major coal producers.
SciDev is a leader in the development and application of both chemistry and process control for solids and liquid separation.
It brings together world-class technology, chemistry, management and the manufacturing capabilities to solve pressing operational and environmental issues for the construction oil and gas, mining and water industries.
The acquisition will be $1.9 million and will be paid over three payments, which will include shares and money.
The deal is expected to deliver additional revenues of $2-4 million per annum from the Hunter Valley coal industry and enhances SciDev’s positioning with key major
coal producers in the region.
SciDev CEO Lewis Utting says that ProSol has an outstanding reputation in the industry and an excellent customer base.
“The transition of the ProSol supply chain to SciDev will allow the company to utilise our strategic joint venture with Nuoer manufacturing, delivering additional
margin upside on the existing ProSol revenue model,” Lewis said.
“In addition, the acquisition provides the opportunity for greater market penetration of SciDev’s MaxiFlox technology amongst ProSol’s existing customer
base,” he added.
MaxiFlow is a range of products that are designed for wastewater treatment across the industrial sectors.
Under the deal, ProSol Australia Director, Ben Gill, and Technical Account Manager, Terry McHugh, will join the team at SciDev.
Ben will become part of the senior management team. The company says it will use his experience in sales and project management to drive growth and end to end solutions for its customers.
“Both Ben and Terry will slot straight into the SciDev team strengthening our ability to continue to execute on the rapidly growing SciDev business development pipeline,” Lewis said.
SciDev is up 6.25 per cent on the Australian Securities Exchange and is selling shares for 60¢ apiece at 4:11 pm AEDT.