Mincon Group Acquires Finnish Firm Lethi For EUR8 Million

(Alliance News) - Rock drilling products manufacturer Mincon Group PLC said Monday it has acquired Finnish firm Lehti Group Oy for EUR8.0 million in cash.

Mincon Group will pay EUR7 million on the completion date of the acquisition, with a further EUR500,000 in April and the final EUR500,000 in April 2021.

Lethi has been a former manufacturing partner of Mincon Nordic, allowing the unit to win several infrastructure projects in the North America, Scandinavia, Asia and Russia.

For 2019, Lethi is expected to report EUR2.2 million in earnings before interest, taxes, depreciation and amortisation, on a turnover of EUR13 million.

"This acquisition means that Mincon Nordic enters 2020 with the momentum provided by the contracts which we successfully won in 2019 and with superb reference sites for Mincon geotechnical products manufactured by Lehti. We believe this acquisition will leave Mincon well placed to further expand in the attractive geotechnical market worldwide," said Chief Executive Joe Purcell.

Shares in Mincon - which is based in Shannon, Ireland - were untraded in London, last quoted at 87.5 pence on Monday.

By Dayo Laniyan; dayolaniyan@alliancenews.com

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