Imdex Limited announced the proposed acquisition of German-based drilling fluids supplier, Mud-Data gmbH, on Friday 17 December 2010.

“The acquisition of Mud-Data is attractive and consistent with Imdex’s global growth strategy and focus on leading technologies. This acquisition will further progress Imdex’s goal of becoming a significant drilling fluids, chemicals and equipment supplier to the mining, oil and gas, geothermal and civil industries in Europe and a leading supplier of solids control equipment globally”, said Bernie Ridgeway, Imdex’s Managing Director.

Mud-Data was established in 1999 for the design, manufacture and sale of equipment relating to drilling fluid systems and accessories, primarily to the oil and gas and geothermal industries. The acquisition of Mud-Data exposures Imdex to opportunities arising from Germany’s geothermal energy policies.

“Mud-Data’s extensive intellectual property and equipment portfolio provides an additional revenue stream from the oil and gas industry globally and local geothermal industry in Germany and neighbouring countries”, said Mr Ridgeway.

Mud-Data was awarded a contract to supply drilling fluids and equipment relating to the drilling of 40 wells in northern Germany, commencing June 2011 with an estimated value of €90 million over a 4-5 year period. The contract has an option to include a further 80 wells. Mud-Data has also tendered for a major project in Spain for 4 wells, supply of mud services and solids control. The final approval is expected in the coming days.

The acquisition of Mud-Data will likely mean that the AMC range of solids control units will be manufactured in Germany and assembled in the key mining regions of Asia Pacific, Africa, Canada and Latin America.

“This is an exciting acquisition for Imdex. Mud-Data’s range of state of the art equipment and engineering expertise will further strengthen Imdex’s position as a leading supplier in the dynamic industries we service” said Mr Ridgeway.

The acquisition is subject to due diligence and formal documentation. All announcements are made via the ASX website and the ‘News’ section of the Imdex website.

For further information, please contact Ben Vorster, Group Marketing & Communications Manager on +61 (0) 8 9445 4010.