The sale will see Enerflow accelerate growth and elevate operational capability on a national scale, and is a strategic acquisition for Norcliffe, which is expected to continue down the acquisition path as well as complete an IPO later this year.
Uniquely positioned to meet the strong and increasing market demand for production drilling services to gold and iron ore producers, Norcliffe represents the merger of two successful and complementary mining services businesses in Roc-Drill, an Australian and international drill and blast contractor, and now Enerflow.
Founded in 2012, Enerflow is a complete heavy mobile equipment rental and maintenance business based in WA. The company employs more than 100 skilled staff, supported by a pool of 4,000+ specialist personnel, and has longstanding partnerships with Tier 1 miners and contractors.
Enerflow’s well-known brand will continue and founders Gareth Moody and Craig Johnston will maintain operational control along with David Smith.
“Becoming part of the Norcliffe Group of Companies enables the expansion plans of the business and will result in the Enerflow brand pushing into the eastern seaboard’s mining sector through experienced and alternative labour hire and heavy equipment maintenance solutions,” said David Smith, Enerflow’s General Manager.
“This acquisition is a meaningful part of our growth strategy and gives us the capital and resources required to take our business to the next level. We would like to thank Cassie, Justin and the broader BDO team who have been integral in optimising the value of our business as well as guiding us through the sale process.”
BDO worked with Enerflow to unlock and translate the value created by founders Gareth Moody and Craig Johnston as they successfully approached complex negotiations and brought the sale to fruition. The deal was facilitated by members of BDO’s Perth Mergers & Acquisitions team including Justin Boyce Cam, Todd Grover, Cassie Adamini and Mark Karlson. This transaction represents the third sale of a West Australian mining services business handled by the team in five months.
“Finding a buyer that met the personal values of all shareholders was critical to this deal’s viability. Our brief was to deliver a capable investment partner seeking leadership retention and organic growth while maintaining and operating under the Enerflow brand. Taking time to understand the Enerflow culture and values, as well as the strategy and levers for growth helped us to articulate the value proposition of the business and identify Norcliffe as the most aligned buyer,” commented Cassie Adamini, Associate Director of Corporate Finance at BDO.
“We are excited to see what the future holds for Enerflow now it has joined forces with such an entrepreneurial business and soon to be listed mining services national player.”
Western Australia continues to be a focus of international and home-grown investors looking to establish a local footprint in a world-class mining jurisdiction.