SYDNEY: Orica has moved to fully acquire its joint venture partner’s explosives business in the United States, in a transaction that will significantly expand the company’s footprint across American quarries and construction sites.
The Australian mining and infrastructure solutions provider has reached an agreement with Nelson Brothers Inc to acquire 100 per cent of the outstanding membership interest in two joint ventures – Nelson Brothers LLC and Nelson Brothers Mining Services, LLC – for US$25 million, while also retiring US$48 million in existing debt from the explosives business.
The acquisition, expected to close in the second half of FY2026 and subject to due diligence, will give Orica full ownership of four emulsion plants strategically positioned in key US markets: Rojo, Black Thunder, Samoset and St Paul. The deal also includes system magazines, bulk explosives delivery vehicles, and increased downstream product storage capacity.
The move represents a significant deepening of Orica’s exposure to the important US Quarries and Construction sectors, providing direct sales channels that will enable stronger adoption of the company’s advanced blasting technology.
“These transactions will further strengthen our North American region, deliver immediate earnings benefits and support our strategy to grow in attractive downstream markets,” said Orica Managing Director and CEO Sanjeev Gandhi.
Under the terms of the agreement, Nelson Brothers will acquire from the joint ventures the business and assets relating to the specialty chemicals business unit, while Orica takes full control of the explosives operations.
The acquisition is expected to deliver an EBIT uplift in the range of AUD$35 million per annum once fully integrated, with further opportunities to grow revenue and realise additional business cost synergies.
When combined with the recently settled litigation with CF Industries, the transaction is expected to be earnings per share accretive in the first full financial year of ownership.
The Nelson Brothers deal comes alongside Orica’s announcement that it has settled litigation with supplier CF Industries for US$169.5 million, removing uncertainty and allowing the company to establish a diversified supply base into the US business.
Orica will fund both the settlement and the acquisition using existing cash and undrawn committed bank debt facilities.
Editor’s Note:
Orica’s decision to fully buy out Nelson Brothers’ explosives business in the US is a bold step. By taking complete control, the Australian company is planting deeper roots in America’s quarry and construction markets. The deal not only gives Orica valuable production plants and delivery systems but also clears away old debt, making the path forward smoother.
This move shows Orica’s intent to grow stronger in North America, where demand for advanced blasting technology is high. The expected boost in earnings and cost savings highlights the financial upside, while settling past legal disputes adds stability. In short, Orica is positioning itself as a bigger player in the US, with more control, less uncertainty, and a clearer growth strategy.