Mawsons has signed a contract to acquire Milbrae’s concrete, quarrying, mobile crushing and mining services businesses, combining 35 quarries and 48 concrete plants across Victoria and New South Wales.
Mawsons has been a joint venture between Adbri and BA Mawson since 2007, while Milbrae has grown since 1969 to own 13 quarries and seven fixed concrete plants.
Milbrae’s workforce, work sites, products and service offerings will be maintained.
Mawsons managing director John Mawson said the biggest difference will be the renewed strength of both businesses moving forward.
“It is a great opportunity and privilege for our company to be able to combine with Milbrae and continue the growth of these strong regional Australian businesses,” Mawson said.
Milbrae has been forecast to earn $85 million in revenue for the 2021 financial year, with the acquisition representing a multiple 4.3 times 2021’s earnings.
The deal was confirmed to begin as of July and is expected to be complete by 1 August 2021.
Adbri chief executive officer Nick Miller said the deal will allow both businesses to develop throughout Australia’s south-east.
“The agreement to purchase the concrete and aggregate operations of Milbrae represents a unique opportunity to expand the geographic footprint of the Mawsons business,” Miller said.
“We understand the needs of our regional customers, employees and suppliers and we look forward to working with Milbrae’s stakeholders as we bring these two great businesses together.”
Milbrae managing director Chris Woods will be helping with the integration and then stepping back in a more collaborative role.
In a statement, Woods said he was “a bit sad to be stepping back” but “delighted our family’s business and all the excellent people in it would be able to keep developing with Mawsons as the new owners”.