Fenner in £40m deal for Australian firm

FENNER is to buy Australian conveyor belt firm Belle Banne in a deal which could eventually be worth more than £40m.

The deal involves Fenner subsidiary Fenner Dunlop Conveyor Services initially taking a 50.01% stake in a joint venture with Belle Banne (Victoria) and taking on the balance after six years.

BBV, owned by Belle Banne (Victoria) Hybrid Trust and Leading Edge Conveyor Solutions Trust, provides conveyor belt maintenance services to the mining and materials handling industries and made pre-tax profits of around £4.14m for the year to the end of June.

Fenner chief executive Mark Abrahams said: “Belle Banne Victoria and Leading Edge Conveyor Solutions are two great companies with experienced and capable people which build on one of Fenner’s core areas of expertise in the mining services sector.

“It also gives Fenner a broader market reach, including the Victorian brown coal and energy industry.   This acquisition further reinforces FDA’s position as the leading provider of conveyor products and value added services in Australia’s buoyant mining sector.”

The initial 50.01% stake will cost Fenner around £13.77m at current exchange rates with the value of the whole deal capped at  total consideration including potential working capital adjustments is capped at £40.11m.

Hessle-based Fenner expects the deal to improve earnings on completion.