SMT Scharf AG takes over Canadian mining specialist
RDH Mining Equipment
Hamm, February 7, 2018 – SMT Scharf AG (WKN 575198, ISIN DE0005751986) has indirectly acquired 100 percent of the shares in RDH Mining Equipment, based in Alban, Canada, through its wholly-owned subsidiary SMT Scharf Corporation, also based on Alban, Canada. With the acquisition, SMT Scharf AG is strengthening its market position as an integrated system provider in the underground logistics area and is supplementing its product portfolio to include rubber-tire vehicles. The purchase price amounts to around CAD 8.0 million (corresponding to approximately EUR 5.17 million). A small proportion of the purchase price will be rendered in treasury shares of SMT Scharf AG, with the rest being paid in cash. For the cash component, SMT Scharf AG had at its disposal funds from the capital increase that SMT Scharf AG successfully realized in November 2017. RDH Mining Equipment has specialized in high-quality underground equipment for mining and tunnel construction for more than 30 years and has been especially active in the North American market to date with a revenue share averaging above 50 %. Its product range extends from jumbo drilling equipment through to load-haul-dump machines (LHDs), scissor lifts and low-loaders. With around 50 staff, RDH generated sales of CAD 14.5 million (equivalent to around EUR 9.36 million) in its fiscal year ending April 30, 2017.
The SMT Scharf Group develops, builds and maintains transport equipment for underground mines as well as for tunnel construction sites. The main product consists of rail-bound railway systems which are used primarily in coal mines and for the underground mining of gold, platinum and other ores. There they transport men and material up to a payload of 48 tons on routes with inclines of up to 30 degrees. SMT Scharf also supplies chairlifts to the mining industry. In addition, the company offers rubber-wheeled diesel and electric vehicles for mining and tunnelling applications through the newly acquired mining specialists RDH Mining Equipment. As a leading supplier of battery-driven vehicles with lithium-ion technology for underground mining, RDH complements SMT Scharf’s portfolio with its diverse product range stretching from loaders and scissor lifts to underground trucks. Overall, the SMT Scharf Group has its own companies in eight countries as well as distributors around the world. SMT Scharf generates most of its sales in growth markets abroad such as China, Russia, Poland and South Africa. SMT Scharf AG has been listed in the Prime Standard (Regulated Market) on the Frankfurt Stock Exchange since 2007.
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