Orica Buys MinovaExplosives, paint and chemicals firm Orica from Australia said it had signed an agreement to acquire UK-based chemical products maker Minova for a purchase price of AUD857 million plus AUD13 million of acquisition costs, boosting its business in the buoyant resources sector and sending its shares up as much as 5%. Orica acquired all the shares of Barbara Ltd, the parent holding company. Well-known tunnelling player Minova Carbotech GmbH of Germany will therefore transfer as a result of being part of the group. The acquisition is to be completed by the end of the 2006 calendar year. The purchase price would be funded through a combination of cash and drawdown of existing debt facilities.Orica said Minova's operations were highly complementary with its existing mining services business, the company's major earnings contributor, and the acquisition would be immediately accretive to earnings after transaction costs. "The acquisition of Minova is consistent with our strategy to grow Orica into a truly global company that delivers superior shareholder returns. Minova is an outstanding business in an attractive and growing market segment that is closely adjacent to Orica's existing mining services business. It has a high quality and committed management team that has demonstrated an excellent track record of significant earnings and cashflow growth," Orica said.UK-based Minova is a clear global leader in providing specialist chemical products for underground mining and civil engineering activities. These products include resin capsules, powders and injection chemicals for use in strata support, ground consolidation and ventilation systems. Minova makes specialist chemical products mainly for underground mining activities. It earned 69% of its 2005 sales from the underground coal mining sector, 16% from metals mining and 15% from underground civil engineering. Minova operates in all of the world's major mining regions except South America. It has more than 1,200 employees and has 17 manufacturing facilities in 10 countries. Minova will be held as a separate business for two years, alongside Orica mining services unit, before integration. The deal will not impact the ongoing integration of the Dyno Nobel businesses. Read E-News Weekly 30/2006.Expected sales revenue for Minova this year is about AUD420 million, with earnings before interest, taxation, depreciation and amortisation (EBITDA) of some AUD98 million. Visit www.orica.com and www.minovainternational.com 44/06.