Shannon-based Mincon eyeing more buys after Canadian acquisition

Shannon-based engineering and drilling equipment maker Mincon is actively seeking further acquisitions after buying Canadian distribution business Pacific Bit for an undisclosed sum.

It marks the Irish company's first acquisition since last March, when it acquired South African company Driconeq.

Pacific Bit distributes mining and construction products in western Canada, is profitable and generated revenues of around Can$5.5m (€3.6m) last year.

Mincon already has a manufacturing plant in Ontario, in eastern Canada through its acquisition of local company Rotacan five years ago, and this acquisition ups its direct presence in the country.

It said it is "prepared to discuss acquisition, partnership and investment with other businesses in sustainable geographic territories and relationships," for key and ancillary products.

On making further acquisitions, Mincon's chief executive Joe Purcell said "if we need to, we will".

He said management is eyeing both product makers and distribution companies, but is not targeting any specific geographies.

"The acquisition of Pacific Bit will expand the reach of the group into the western part of [Canada] and create another leg for organic growth to continue," said Davy analyst Colin Sheridan.

"The ongoing business is progressing well and the group will have the ability to expand into new regions with [this] bolt-on acquisition. Mincon will be able to grow sales into western Canada following the acquisition, an area where the group has not been strongly present previously," he said.

Mincon's shares - up nearly 10% in the past 12 months - rose marginally on its latest deal news.

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