North American Construction Group buys Australian firm
By Adam Freill
ConstructionCanadian provider of heavy civil construction and mining services in North America acquires private Australian heavy equipment solutions provider MacKellar Group.
North American Construction Group has entered into a definitive purchase and sale agreement to acquire MacKellar Group, an Australian company serving the mining and civil sectors. The value of the deal is estimated at $395 million.
MacKellar has a heavy construction equipment fleet that provides heavy earthworks solutions to the mining and civil sectors. NACG says the transaction will significantly expand its capability and allow the company to serve a highly valuable and diversified base of customers globally. MacKellar will continue to operate and execute on its growth strategy, while delivering on its commitments to its customers and partners. NACG has been in the Australian since 2021, when it acquired DGI Trading Pty Limited.
“NACG has built a strong relationship with MacKellar over the past two-plus years. Given the operational and cultural similarities that our companies share, this acquisition is a rare and attractive opportunity,” said Joe Lambert, chief executive officer of NACG. “Over the years, we have worked extremely hard to be part of the solution to help lower the operating costs of our customers through safe, efficient operation and maintenance of our equipment fleet. We are excited about partnering with MacKellar to serve our expanded customer base with the same innovations at a time when commodity producers are striving to maximize production and efficiency.”
“Joining NACG offers a significant opportunity for both companies to share best practices and execute on our growth strategy,” said Duncan MacKellar, Chairman of MacKellar Group. “Our shared culture, highly skilled maintenance and operations teams, and now global operations will position us as a leader in heavy equipment fleet, allowing us to better serve customers across Australia.”
The addition of MacKellar Group includes approximately 450 mobile heavy equipment assets; 1,000 employees, including over 375 maintenance personnel; and 15 operating projects across a variety of service offerings including contract mining, civil earthworks, dry and maintained equipment rentals and component rebuilds.
The transaction is expected to close in the fourth quarter of 2023.
