Toll Holdings buys mining transport supplier Mitchell Corp to increase its presence in Western Australia
March 14, 2011
Toll Holdings plans to muscle in on the booming resources trade in Western Australia after buying Mitchell Corp for around $110 million.
The transport and logistics giant finalised the deal last week, which will need the Australian Competition and Consumer Commission’s (ACCC) approval.
Mitchell is a major supplier of transport and logistics services to and from mining sites in Western Australia.
“It will be an important part of our global resources division where it will provide Toll with a strong base in the WA resources market complimenting our mining services operations in other states and creating service opportunities for other Toll businesses,” Toll Managing Director Paul Little says.
“The continuing development of the Western Australian resources industry is globally significant and offers Toll important growth opportunities in a number of our businesses.”
The CEO of Toll’s global resources division, David Jackson, says Mitchell provides transport services in the bulk resources, hydrocarbons and dangerous goods market.
Toll’s global resources division services the oil and gas, iron ore and coal industries in Australia and Asia while also providing marine and remote logistics services.
“Mitchells provides us with a strategic market position in a growth sector and the opportunity to further improve and grow that business,” Jackson says.
The deal came as Toll was awarded the contract to help in the construction of a Queensland LNG project between Gladstone and Curtis Island.
The company has also been shortlisted to build, own and operate Darwin’s proposed marine supply base.
Once complete, the base will provide space for rig tenders supplying offshore oil and gas activities from the Arafura Sea to the Browse Basin.