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Wood completes TNT Americas exit

Big UK-based engineering services group Wood plc has completed the US$38 million sale of US heap leach and materials handling project specialist Terra Nova Technologies (TNT) to Murray & Roberts.
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South Africa's Murray & Roberts has completed the US$38M acquisition of US-based Terra Nova Technologies

Staff reporter

Wood maintains a presence in the international mining advisory arena but ejected TNT as part of an asset disposal programme aimed at raising up to $300 million.

London-listed Wood (WG) said the sale price was 5.2-times TNT's 2018 earnings before interest, tax and amortisation (EBITA) of $7.3 million.

Murray & Roberts, Johannesburg listed (JSE: MUR), announced the deal with Wood back in March, saying the acquisition via its Cementation Americas business would be funded from cash and an existing debt facility.

"The acquisition of TNT complements the engineering and construction services of the Murray & Roberts Underground Mining platform," Murray & Roberts CEO Henry Laas said at the time.

"Given the global reach and client network of the Underground Mining platform and the number of projects in execution at any time, the potential to grow the TNT business is significant."

Established in 1997 in San Diego, California, TNT has offices in Boise, Idaho, and Santiago, Chile. The company is said to have delivered about 75 projects in at least 15 countries, with particular focus on crushing and screening plants, overland conveyors, heap leach systems and mobile stacking systems for waste and dry tailings.

Murray & Roberts' share price is up about 8% so far 2019, giving the company a market value of US$465 million this week.