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ESCO Equity Investor in one of Australia's Largest Heavy

Engineering Groups


ESCO Corporation announced its equity investment in Bradken, Australia's largest supplier of wear products and engineered equipment, including ESCO products, used by the mining and construction sectors. With the largest foundry capacity in the southern hemisphere, Bradken is also a leader in a wide range of industrial castings, and is Australia's largest producer of railway bogey systems and freight wagons in the rail sector. Bradken employs more than 1,400 people throughout Australia and New Zealand.

CHAMP (Castle Harlan Australian Mezzanine Partners Pty Ltd) is the lead investor in this agreement to purchase the Bradken business from Smorgon Steel Group. Members of the Bradken management team and ESCO Corporation from Portland Oregon, USA, will also be equity investors. ESCO licences technology to Bradken for the production and marketing of cast wear products and other capital equipment. JP Morgan Chase has underwritten debt financing for the transaction. The purchase of Bradken is set to close in early December 2001.

Steve Pratt, President and CEO of ESCO, today said, "ESCO Corporation's core business over our 88 year history, has been servicing the resource related industries of mining, construction, forestry, aggregate crushing, and dredging. Bradken is ESCO Corporation's oldest, largest, and most successful licensee with a relationship that spans over 45 years. This strategic move combines ESCO leading market position in the Northern Hemisphere with an equity position in the largest supplier of mining, construction, and industrial products in the Southern Hemisphere. It definitely enhances ESCO Corporation's reach as the world's leading supplier of products and services to the worldwide mining industry."