InterFinancial Limited is pleased to have acted as Lead Advisor to ATMR in relation to its merger with HMG to form a major new player in the heavy engineering and maintenance sector with annual revenues in excess of $100 million.

HMG (Heavy Maintenance Group) is a roll-up vehicle established by mid-market private equity investor, RMB Capital Partners.

The merger will further strengthen HMG’s position in the mining sector and diversify the group by adding customers in regions such as Sydney and Melbourne and new industry sectors such as power generation and distribution.
ATMR director Malcolm White said the merger with HMG was highly synergistic because it would provide ATMR with a much stronger presence in key locations in northern Queensland such as Mackay and Mt Isa.

ATMR’s founders, Malcolm White and Chris Gavan, will remain with the merged business.

ATMR, which employs approximately 100 staff, specialises in electric motor, gearbox, transformer and pump repairs and the provision of technical and site services to the mining/mineral processing, power distribution/generation, water/waste water, manufacturing, rail and defence sectors. ATMR also provides laser alignment, HV field service, load testing, thermal imaging, switchgear, general engineering, and fabrication services.

HMG is a private Australian company which employs over 400 people and comprises two core businesses: HMG Hardchrome and HMG Westhill. HMG’s current operations include workshop-based services such as hydraulic cylinder rebuilds and dragline bucket repair, as well as on-site services such as equipment shutdowns and contract maintenance. HMG offers significant technical expertise, scope and capacity to the mining services and heavy engineering sectors. HMG is based in Brisbane, with operations in Brisbane, Mackay and Mt Isa.

RMB Capital Partners has a mandate to invest between $50m and $100 million a year in Australian and New Zealand businesses. It is independently managed by its Sydney-based partners, Nicholas Batchelor and Mark Summerhayes, but has the financial backing of FirstRand Group, one of the southern hemisphere’s largest financial institutions with assets of over $100 billion. The firm commenced operations in 1998 and has a strong track-record in mid-market leveraged buyouts, having completed 19 investments and assisted these companies in making over 35 further bolt-on acquisitions. Recent successful divestments by RMB Capital Partners include the ASX listing of Hastie Group, the sale of Bullivants to Wesfarmers, the sale of a shareholding in Bluestone Group to ABN AMRO, and the sale of Concrete Technologies to Alesco

For further information contact:

Paul Paterson, Director, InterFinancial
(02) 9241 7400
ppaterson@interfinancial.com.au