MACA Limited announced that it has entered into a binding agreement to acquire assets, contracts, employees and liabilities comprising Downer EDI Limited's Mining West business ("Mining West"), for an acquisition value of $175 million, subject to adjustment reflecting changes in the carrying value of inventory at completion ("Acquisition"). The acquisition value will be satisfied via a $109 million cash payment at completion and 12 monthly payments of $5.5 million each. The Acquisition represents a 2.5 times enterprise valuation of Mining West's fiscal year 2020 adjusted EBITDA of $70 million. Mining West delivered $400 million of revenue in fiscal year 2020 and had contracted work in hand as at 30 June 2020 of $1.1 billion, with $390 million attributed to fiscal year 2021. Mining West is a provider of surface contract mining services to the Western Australian iron ore and gold sectors, with four contracts all based at long-term projects with quality customers: Karara Iron Ore Project (Ansteel): engaged since mining operations commenced in 2012, secured until March 2022, with a tender submitted for a five year extension. Eliwana Iron Ore Project (Fortescue Metals Group): five-year contract secured until August 2025. Gruyere Gold Project (Gold Fields, Gold Road Resources): engaged since mining operations commenced in 2018 on a five-year contract secured until September 2023 with the potential for further extensions. Sino Iron Project, Cape Preston (CITIC Pacific Mining): engaged since 2017, contracted until March 2021, with further 1 year option, with a tender submitted for a three year extension. Mining West's larger scale surface mining fleet comprises 14 excavators and shovels, 65 dump trucks, 11 surface drills and 36 other ancillary machines. The fleet being acquired is currently fully utilised, or in the process of being deployed to projects. The equipment has mixed life (with machines being on average mid-life), with due diligence confirming that machines are in good working order, having been well maintained by Mining West's internal plant department.