The North American Construction Group Ltd. has Announced the strategic Acquisition of an Australian Component Supplier

North American Construction Group Ltd. announced today that it has entered into a definitive agreement to acquire DGI Trading Pty Limited (“DGI”) for an estimated $23.5 million.

DGI, situated in Kempsey, New South Wales, Australia, supplies vital components to the mining sector via commercial partnerships and a complex logistical network. DGI maintains a network of suppliers and partner facilities in over ten significant countries, allowing for flexible and cost-effective connections. DGI personnel are well-versed in all industry-standard equipment and have unrivaled knowledge in this specific field.

The acquisition represents another significant move in the Company’s attempts to vertically integrate its capital maintenance program while diversifying its service offerings. The acquisition price is based on a closing price equal to DGI’s net tangible assets and subsequent payments based on the business’s profitability over four years. The total anticipated acquisition price reflects a 3.0x EBITDA multiple over the next twelve months based on our opinion that current global demand for mining components has returned to, and will remain stable at, or perhaps surpass, pre-COVID 19 levels the next twelve months..The transaction is scheduled to close on July 1, 2021, and will be financed using existing debt facilities.

About North American Construction Group Ltd.
North American Construction Group Ltd. is a significant provider of heavy construction and mining services in Canada. NACG has been providing services to many mining and resource industries for over 65 years.