Dywidag Systems International, otherwise known as DSI, is believed to be circling Orica’s commercial explosives and blasting systems business, Minova.
Triton Partners sold DSI to European engineering firm Sandvik in December, and sources say that it has been interested in the Minova business for some time.
Explosives maker Orica, run by Sanjeev Gandhi, told the market in May that it had launched a sales process for its Minova business and it had tapped investment bank JPMorgan for the sale.
The business – one that Orica purchased in 2006, reportedly for $857m – offers chemical and mechanical ground control products to the mining, civil construction and tunnelling industries.
Minova booked sales revenue of $219.1m in Orica’s first half of the 2021 financial year, down from $263m, and earnings before interest and tax of $7.2m, down from $11.1m.
It is understood to generate about $30m of annual earnings before interest, tax, depreciation and amortisation.
In recent years, it underwent a restructure, where it became a stand-alone business after facing challenges by changing global market conditions.
DSI is one of Minova’s main competitors and has long been considered the logical acquirer of the business, having taken a look in previous years.
Other parties interested in the business are expected to also be private equity firms.
A key focus for potential suitors of Minova would be the level of exposure the unit has to the coal industry, which is out of favour with investors.
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