MTQ Corporation announced Tuesday that its wholly owned subsidiary, Blossomvale Investments Pte Ltd, has entered into a Share Purchase Agreement (SPA) to acquire all issued shares (Sale Shares) of Australia's Binder Group Pty Limited (Binder) and its subsidiaries (Binder group). Binder, which is based in Perth, Western Australia, specializes in the design and manufacture of proprietary and custom-built pipe support and pipe suspension solutions, focusing mainly on the oil and gas sector. The company, established in 1982, has a production facility in Perth and it also owns a 50 percent stake in an Indonesian entity which operates a manufacturing facility in Jakarta, Indonesia.

"The sale and purchase of 75 percent of the Sale Shares under the SPA is expected to be completed shortly and the remaining 25 percent of the Sale Shares will be completed in stages over the next two years," MTQ said in an announcement on the Singapore Exchange Ltd. The total acquisition cost is $17.2 million (AUD 19.3 million), including an initial payment of $12.9 million (AUD 14.5 million) which MTQ will fund through its internal cash resources.

MTQ hopes to strengthen its oilfield operations as the acquisition of Binder would enable the firm to expand its current services and products as well as grow its oilfield engineering business through selling to a larger pools of customers. In addition, Binder's joint venture in Indonesia is an established and profitable operation that can enhance MTQ’s effort to develop the growing Indonesian market for its other oilfield service businesses.