Resource and rail products makers Bradken Ltd intends to raise $50 million through share placement to fund the acquisition of Canada's Almac Machine Works.

Bradken announced on Tuesday it had entered into an agreement to purchase the business assets of the Canadian manufacturer and supplier.

An underwritten institutional placement of ordinary shares will raise $50 million, with the proceeds to fund the acquisition and/or reduce Bradken's debt, the company said in a statement.

The acquisition is expected to be finalised in July.

"The acquisition of Almac is in line with Bradken's strategy of building a substantial presence in the world's major mining regions and globalising its consumable products businesses," Bradken managing director Brian Hodges said.

Bradken shares have been placed in a trading halt. It was last traded at $7.25.

Based on its latest financial report, Bradken had a net debt of $326.3 million with a gearing level of 46.3 per cent at December 31. It expects earnings before interest, tax, depreciation and amortisation (EBITDA) this year to be in line with last year's EBITDA of $169.1 million.

Bradken provides parts, equipment and services to the mining, minerals processing, rail, industrial, power and cement industries across Australia, New Zealand and North America.

Alberta-based Almac manufactures and supplies machinery, parts and assemblies to Canadian oil sands, mining, and conventional oil and gas markets.