Orica has announced that it is to acquire Exsa, a Peruvian manufacturer and distributor of industrial explosives, enabling it to significantly increase production.
As part of the $302 million deal, Orica will integrate Exsa’s Initiating Systems manufacturing facility into its global manufacturing footprint. By utilising the facility’s capacity, Orica will be able to significantly increase production and serve demand across the Americas.
“Exsa’s world class Initiating Systems facility integrates the manufacture of almost every component of a detonator on site, providing meaningful and tangible synergies upon integration into the Orica network, with the ability to take advantage of significantly under-utilised manufacturing capabilities,” Orica managing director and CEO, Alberto Calderon, said.
“The deal also increases our exposure to copper and gold, and presents significant cross selling opportunities for us to introduce Orica’s technology, products and services to Exsa’s broad customer base.
“The acquisition of Exsa perfectly complements our existing Latin American operations, where we already have a strong footprint.
“In addition to facilitating this acquisition, the capital raising will provide Orica with greater balance sheet flexibility to continue to invest in core capital initiatives and growth engines,” Mr Calderon said.
The acquisition will be cash funded through a capital raising. This will also provide funds to give greater balance sheet flexibility to support investment in Orica’s core capital initiatives and growth engines.