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NRW Holdings to complete earnings accretive acquisition

NRW Holdings (ASX:NWH) is expected to complete the acquisition of Hughes’ East Coast coal production drilling operations later today.

This follows the second meetings of creditors of Hughes Drilling Limited and 13 related entities.

Hughes’ East Coast operations comprises a fleet of 35 large drill rigs and circa 140 employees providing services under contract to a number of major mine operators and owners in Queensland and New South Wales generating annual revenues of around $40 million.

The acquisition will be earnings accretive with the purchase consideration of $11 million (subject to certain completion adjustments) being funded from NRW’s existing cash reserves.

Hughes’ East Coast Operations have continued to receive strong contract tender enquiries with a current order book of $50 million.

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