RDH Mining Equipment has joined a larger family, which its management says will mean more opportunities to grow as a company and more markets to expand into.
The mining equipment producer announced in a Feb. 7 news release it was acquired by German-based company SMT Scharf for $8 million.
"We were approached by Scharf and they said they were interested in making a deal," said Neil Edward, chief financial officer for RDH Mining Equipment. "We had visited them in Germany to continue discussions back in October to discuss our two businesses."
The company is located in Alban, about an hour southeast of Sudbury, and supplies mines with mobile equipment.
SMT Scharf produces rail transport systems for the mining industry.
Edward said the two companies had agreed some time ago they would be a good fit together. They had a few parts of negotiations regarding legal aspects drag out longer than anticipated, but the deal turned out well.
"What we want in their vision is for RDH to be a centre of excellence in rubber-wheeled mining equipment for the SMT Scharf group," he said.
He explained they were the pioneers in hard rock battery equipment since 2011 and their first units went to Kirkland Lake Gold. It was something Scharf was very excited about, especially with the demand in battery equipment increasing exponentially. Now with so many other companies offering battery equipment, Edward said it's more competitive. With the acquisition, they are being backed by a larger corporation. Edward explained SMT has a workforce of 330. With the 50 at RDH, that gives them a total of 380.
"Now we can compete at the next level," Edward said.
He added they...