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Major Drilling Acquires Explomin
Major Drilling acquires Peruvian drilling contractor Explomin for up to US\$85 million, expanding its market reach and specialized services.
English
Canada
Latin AmericaGrowthMergerAcquisitionInternational BusinessMining Industry
Major Drilling Group International Inc.Explomin Perforaciones
Denis LarocqueCarlos Urrea
- What specialized services does Explomin Perforaciones offer?
- Explomin's specialized services include deep hole, directional, and high-altitude drilling, and it has a strong reputation in South America with a majority of its revenue coming from senior mining companies.
- What is the total potential cost of the acquisition and how will it be funded?
- The total cost of the acquisition could reach up to US\$85 million (approximately C\$115 million), funded by Major Drilling's existing cash position and debt facilities. The earn-out is contingent upon Explomin meeting certain EBITDA growth milestones.
- What is the upfront cash payment for the acquisition of Explomin Perforaciones?
- Major Drilling Group International Inc. acquired Explomin Perforaciones, a leading specialty drilling contractor in Peru, for an upfront payment of US\$63 million, with a potential additional US\$22 million earn-out.
- What is the potential impact of the acquisition on Major Drilling's market position?
- The acquisition is expected to immediately increase Major Drilling's exposure to the copper market and strengthen its position as the world's largest mineral driller.
- What were the statements made by the leaders of Major Drilling and Explomin regarding the acquisition?
- Both Denis Larocque (President & CEO of Major Drilling) and Carlos Urrea (Chairman and Founder of Explomin) expressed enthusiasm about the acquisition, highlighting its strategic benefits and the alignment of company cultures.