Major Drilling Group International Inc. announced that it has acquired all of the issued and outstanding shares of South American contractor Explomin Perforaciones. The deal is valued at up to USD 85 million, of which USD 63 million has been paid upfront and another USD 22 million is available through an earnout (see definition here).
Explomin Perforaciones has projects primarily in Peru and services the Colombian, Dominican Republic, and Spanish markets. When the transaction concludes, Major Drilling will acquire a fleet of 92 drill rigs, bringing its total fleet to 701, expanding its footprint in South America, and solidifying its position as the world’s largest mineral driller.
‘We are very excited to welcome Explomin and its employees into the Major Drilling group,’ said Denis Larocque, President & CEO of Major Drilling. ‘This acquisition is directly aligned with our strategic plan, offering us growth opportunities in new jurisdictions, a diversified revenue source with additional underground operations, and an expanded senior customer base with high operational standards. Peru is a market that has been on our radar for a number of years given it is the second largest producer of copper in the world. Carlos Urrea, Chairman and Founder of Explomin, and the existing management team will remain in place to continue building on a strong reputation as the specialized driller of choice in the regions in which they operate. Explomin and Major Drilling also have very similar cultural and operational values, approaches with respect to customer service, and strong commitments to sustainable resource development consistent with Major’s global ESG framework.’
Read the full announcement here:
