The acquisition is to be made through Fenner’s wholly owned subsidiary Fenner Dunlop Conveyor Services, and is expected to be immediately earnings enhancing for the company.
An initial sum of A$21.95 million will be followed by a further A$21.95 million within the next six years. Additional payments will also be made to acquire remaining minority interests in the company, and the total consideration has been capped at A$63.95 million.
The deal follows the acquisition by Fenner in July of US company MRI Medical.
Mark Abrahams, CEO of Fenner, comments that the acquisition gives the company a broader market reach, including the brown coal and energy industry in Victoria, Australia.
Belle Banne and Leading Edge Conveyor Solutions both produce and service conveyor belts for the mining and materials handling industries, and are based in Victoria, Australia and Queensland, Australia respectively. In the year to June 2010 the two companies made a combined pre-tax profit of A$6.6 million.
East Yorkshire-based Fenner manufactures reinforced polymer products including conveyor belting for the mining and power generation markets. The AIM-listed company employs around 3,870 people and declared a turnover of £499.4 million in 2009.
Fenner Group was founded in 1861 and operates around the world through its subsidiaries, Fenner Drives, Fenner Precision, James Dawson, and Fenner Advanced Sealing Technologies.