Buyers will need up to $50 million and an interest in further investment in Coleman Transport
Western Australian explosives haulage specialist Coleman Transport is on the auction block.
KPMG is handling a sale of the full business, with offers of between $40 million and $50 million expected to come in.
The company currently earns about $15 million a year before interest, tax, amortisation and depreciation, but the price will also be impacted by the current downturn in the mining sector.
On the other hand, the company also has a portfolio of properties in the mining centres of Wyndham, Port Hedland, and Karratha.
While the real estate value has been suppressed in recent years, the diversity of assets is seen as a positive in the forthcoming sale.
Based in Perth, Coleman Transport deals almost exclusively in ammonium nitrate, with specialist processes and equipment in place for handling the key ingredient of mining explosives.
The business – which keeps a very low profile – is reported to be under divestment because of succession planning issues. KPMG is hoping for a buyer that can also invest into the company’s next phase of growth.