The workshop, including the land, buildings, equipment and the business name of South Australian based engineering servicescompany Davo-Weldtite [Pty Ltd] (“Davo”) were purchased for $3.54 million.

The purchase of the Davo business compares favourably to the establishment of a new RCR workshop in South Australia, providing an immediate platform for RCR and a financial breakeven scenario in year one of ownership. It provides RCR with a strong platform to build its business in the rapidly growing South Australian and Victorian resource sector. The acquisition will be internally funded by RCR.

Acquisition Overview
The acquisition of Davo provides RCR Engineering with a base from which to launch its trademark Off Site Repair (OSR™) process across the rapidly growing South Australian and Victorian resource sector.

The location also provides a local service centre to support the ever increasing volume of RCR materials handling and processing products that are now operating in these states. It also enables RCR to grow some of its more specialist product
offerings such as the onsite and offsite crusher maintenance services currently provided in Queensland and New South Wales, rubber lining and belt splicing services currently supplied only in Western Australia and will act as a base for RCR’s
Construction and Electrical business units.