SW1 End to end overview, page-163

Wonder how much will swift sell for one day....

Odyssey PE dials into Macquarie's underground mining play

• Street Talk understands Odyssey is in exclusive talks to buy mine site communications and automation company MST Global.
  
  It's understood Odyssey is running final due diligence and arranging funding, and is seeking to have sale documents signed by the end of March.
  
  The deal is expected to see Macquarie Group, which owns just less than half of MST Global via its principal investments team, exit in full, and Odyssey take a controlling stake in the company.
  
  MST Global provides communication and monitoring equipment to miners on six continents, specialising in underground operations. It is expected to be well placed to capitalise on strong commodities prices and the associated uptick in mining activity, with miners increasingly turning towards technology-based solutions to bring down costs.
  
  Investor sources told this column Odyssey is expected to pay about five-times earnings for the business. MST Global is believed to be making about $20 million in annual earnings before interest, tax, depreciation and amortisation.
  
  It is understood Odyssey saw off interest from rival private equity and strategic players in an auction run by Rothschild Australia, to gain exclusivity.
  
  The process comes as the issue of evolving technology and artificial intelligence dominates debate across a raft of sectors, including mining and related industries. Smart sensors and autonomous vehicles are already in use by several large players such as Rio Tinto.
  
  MST was established by Gary Zamel in 1989 and he remains a director at the company, which is chaired by former Powercoal chief executive Phil McCarthy. Zamel also founded the UNSW Centre for Innovation and Entrepreneurship .
  
  The company's website shows that Macquarie Capital participated in a capital raising in 2011. In the same year, MST acquired Nixon Communications in Australia. Nixon is a provider of communications for remote pipelines, underground and surface mining environments, as well as city-based municipal and industrial customers.
  
  Should Odyssey close the deal as expected, it would be the firm's second acquisition since setting sail last year.
  
  Odyssey's maiden purchase a controlling stake in camping and outdoor products manufacturer, OZtrail, which it bought alongside company chief executive Vanessa Garrard and Dr Glen Richards, the vet behind the Greencross Vets and Petbarn empire.
  
  Odyssey was created last year after former Quadrant Private Equity partner George Penklis teamed up with former CHAMP Ventures operatives Paul Readdy, Gareth Banks and Jonathan Kelly.