Thiess to acquire PYBAR for $65m

Underground mining services company Metarock has entered into a binding agreement to sell PYBAR for $65m to Thiess as the global company looks to grow its underground hard rock contracting division.

Estimated net proceeds to Metarock will be about $36.3 after deducting PYBAR’s outstanding debt and estimated transaction costs.

Post transaction, Metarock will comprise the Mastermyne, Wilson Mining and MyneSight business units, with the PYBAR brand remaining and continuing to be operated by Thiess.

Metarock group executive chair Jon Romcke says the agreed transaction represents a great outcome for Metarock shareholders.

“The purchase consideration represents compelling value for the PYBAR business, which will continue to grow as part of Thiess’ global mining services platform,” he said.

“The transaction significantly strengthens Metarock’s balance sheet and is expected to return the company to a net cash position, allowing it to focus on the Mastermyne, Wilson Mining and MyneSight businesses.

“The transaction removes the remaining constraints over the company’s ability to pursue the significant growth opportunities in the pipeline and represents a further key milestone in the successful turnaround of the Metarock Group.”

All PYBAR employees will transfer to Thiess’ underground hard rock contracting division, including the senior management team led by PYBAR chief executive James Glover.

Completion is expected to occur on 30 April 2024, subject to a number of conditions, including: limited number of third party consents relating to key customer contracts and leases; no material breach or termination of certain key customer contracts; and no workplace fatality of any PYBAR employee or contractor during the period before completion.

Metarock’s major shareholder, M Resources Group, is fully supportive of the transaction.