North American Construction Group Acquires Iron Mine Contracting for $125M, Boosts $1B Credit Capacity
North American Construction Group completed its $125 million acquisition of Iron Mine Contracting on April 7, 2026, adding a Western Australia platform with exposure to gold, iron ore, lithium, and rare earths. The deal is funded by a $535M amended credit facility, $45M equipment financing and deferred earn-outs.
1. Acquisition Closes with Economic Effective Date January 1, 2026
The company finalized its acquisition of Iron Mine Contracting on April 7, 2026, with an economic effective date of January 1, 2026. Total consideration is approximately $125 million, subject to final adjustment based on IMC’s December 31, 2025 financials, which will be reflected in the quarter ending June 30, 2026.
2. Tier 1 Platform Established in Western Australia
Iron Mine Contracting brings a diversified, blue-chip customer base and services spanning gold, iron ore, lithium and rare earths in Western Australia’s key mining regions. Combined with existing MacKellar operations, the acquisition enhances scale, deepens local expertise and positions the company as a Tier 1 contractor in the Australian market.
3. Enhanced Credit Facility and Liquidity Capacity
Concurrent with closing, the senior secured credit facility was amended to add direct lending capacity of $535 million and permit $500 million of equipment financing, boosting total senior secured capacity above $1 billion. The facility now matures April 7, 2029, remains a revolver with no scheduled repayments and maintains consistent quarterly financial covenants.
4. Funding Structure and Deferred Payments
Upfront cash funding of $41.5 million was drawn from the amended credit facility, while $45 million of equipment financing was assumed at closing. Approximately one-third of the consideration is structured as earn-outs and deferred payments to sellers over four years, contingent on business performance.