Mining services provider Mastermyne Group Limited (ASX:MYE) will acquire Diversified Mining Services for $20 million.
The company says the purchase of the Queensland mining maintenance and engineering services provider is a significant step towards expanding its service offering.
The purchase will involve issuing $9.7 million of Mastermyne shares to DMS shareholders as well as $10.3 million in cash to payout and restructure the company’s debt.
Chief Executive Tony Caruso says the DMS business will provide a key suite of services that complement the company’s current offering.
The deal is subject to DMS shareholder approval.
Mastermyne reported a net profit of $2.99 million in the 2014 financial year.