Monday, 16 October 2023: Omnia Holdings (“Omnia”) announced today, a strategic partnership with Swedish-based Hypex Bio Explosives Technology (“Hypex”) and the acquisition of a minority equity stake in the company.
Hypex is at the forefront of innovative and sustainable civil explosives solutions and has developed a ground-breaking emulsion using hydrogen peroxide (HP), offering substantially enhanced environmental benefits compared to conventional products.
This collaboration marks a significant milestone for both Omnia and Hypex as it will notably enhance the ongoing development and commercial rollout of Hypex’s HP emulsion technology in key markets. Additionally, it provides Omnia, the parent company of global blasting solutions provider BME, with access to state-of-the-art technology.
Omnia, in conjunction with BME, has established a reputation for its dedication to innovation and market-driven product solutions. Extending its services across Africa, Australasia, North America and Brazil, BME offers cutting-edge products and services at every stage in the mining explosives and blasting solutions supply chain, using technology to maximise safety and minimise environmental impact.
Commenting on the transaction Seelan Gobalsamy, CEO of Omnia said:
“Hypex is a good strategic fit for BME and aligns with Omnia’s sustainability and high-growth objectives, including pollution and CO2 reduction. Hypex has developed the first non-nitrate explosive emulsions in the market and reduced the carbon content by 90% over traditional sources. This technology has the potential to completely change the explosives supply industry.”
Ralf Hennecke, Managing Director of BME adds, “As one of the largest explosives and blasting solutions suppliers on the African continent, BME is pursuing a globalisation strategy which is optimally aligned to the sustainable, nitrate-free emulsion technology offered by Hypex.”
Hypex’s experience in rapid yet safe development cycles, combined with the company’s proven track record in commercialisation activities, will utilise the proceeds from this transaction to further strengthen the organisation and invest in accelerated growth.
Thomas Gustavsson, CEO of Hypex, said:
“We are thrilled to announce the partnership with Omnia, and I am very happy to have not only an ideal investor on board but also a company whose culture is well aligned with ours. I foresee significant synergies and accelerated accomplishments as a direct result. The team and I are grateful for the hard work done by both sides to accomplish this deal.”
This partnership agreement aligns seamlessly with Omnia’s capital allocation framework of adding new revenue streams in future high-growth international markets while maintaining a diversified and cash-generative business, improving the Group’s competitive advantage and resilience given anticipated market changes, and aligning with its sustainability journey.
“As a responsible industry leader, we are committed to sustainable innovation and the responsible use of chemicals for the health, safety and well-being of our planet and its people. Our partnership with Hypex strengthens our ability to develop and distribute eco-friendly products and technologies and is testament to our purpose of creating a greener and safer future for all,” said Gobalsamy.
