Singapore-based private equity firm Novo Tellus announced that it has completed a significant investment in Russell Mineral Equipment (RME), marking its first acquisition in Australia.
Novo Tellus did not provide financial details of the transaction but said the deal extends its portfolio of industrial and technology businesses.
The firm said the investment gives it a stake in Toowoomba, Queensland-headquartered RME, a supplier of mill relining systems and aftermarket services used by mining and mineral processing companies globally.
RME, founded in 1985, operates across more than 440 mine sites in 64 countries. It has 13 international sales and service centres and employs more than 450 people.
The deal completes the final stage of RME’s ownership succession plan initiated by founder John Russell.
Novo Tellus joins existing shareholders Resource Capital Funds (RCF) and the Australian government’s National Reconstruction Fund Corporation (NRFC), which are backing RME’s next phase of expansion.
“We look for companies with leading technology in mission-critical fields, and RME is a defining example,” Novo Tellus Managing Partner Wai San Loke said.
He said demand for copper and other metals used in electricity grids, data centres and advanced manufacturing increased the strategic importance of technologies that reduce mining downtime and improve operational safety.
Novo Tellus said it sees opportunities to expand RME’s automation capabilities and aftermarket services, including spare parts, maintenance support and on-site services.
“RME supports mining operations globally across the world’s most sophisticated mine sites, with an installed base that creates deep, long-term service and support relationships,” the firm said.
Novo Tellus is a Singapore-based private equity investment firm that focuses exclusively on industrial and technology companies in Asia and other developed markets.
Founded in 2010, the firm manages more than $1 billion in assets and specialises in acquiring and growing mid-market businesses with strong engineering or manufacturing capabilities.
Novo Tellus closed its third fund at $510 million in 2023 and Fund 2 at $250 million in 2021.
It primarily focuses on mid-market opportunities but has expanded its cheque sizes from $25 million to $50-100 million for Fund 3 so that it can conduct more control deals. It typically covers a range of approaches from partnership building, scale-ups, growth pivots, and build-and-buy techniques.
