Major Drilling Group International Inc. announces that it has acquired all of the issued and outstanding shares of Explomin Perforaciones, a leading specialty drilling contractor based in Lima, Peru for an upfront cash payment of US$63 million, with an additional US$22 million available through an earn-out for total consideration of up to US$85 million, or approximately C$115 million.
The transaction is expected to be immediately accretive and provides Major Drilling with increased exposure to the copper market as Explomin is one of the largest South American drilling contractors, with the majority of their operations in Peru while also servicing markets in Colombia, Dominican Republic, and Spain.
“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.”