Disposal of Boart Longyear
07 June, 2005
Anglo American plc announces that it has agreed to sell the Boart Longyear Group to private equity group Advent International plc
Anglo American plc (Anglo American) announces that it has agreed to sell the Boart Longyear Group, part of Anglo Ferrous Metals and Industries, to private equity group Advent International plc for an enterprise value of US$545 million. The consideration is payable in cash.
On 2 March 2005, Anglo American announced that it had received a number of approaches for the purchase of the Boart Longyear Group, a leading provider of drilling services, tools and equipment for the natural resource, construction and quarrying industries and industrial markets worldwide, and had, accordingly, undertaken a formal process to determine whether shareholder value would be maximised by the sale of the group.
Together with the sale of Wendt (part of the Boart Longyear Group of businesses), which was announced on 31 March 2005, the total enterprise value achieved from the process amounts to US$635 million, which will be used for general corporate purposes. In 2004, Boart Longyear reported EBIT of US$67 million.
Tony Trahar, CEO of Anglo American said, "This transaction is part of our ongoing strategy of optimising our asset base."
Notes to Editors:
Anglo American plc is one of the world's largest mining and natural resource groups. With its subsidiaries, joint ventures and associates, it is a global leader in platinum group metals, gold and diamonds, with significant interests in coal, base and ferrous metals, industrial minerals and paper and packaging. The group is geographically diverse, with operations in Africa, Europe, South and North America, Australia and Asia.