Major Drilling acquires leading South American specialty contractor

Major Drilling has acquired Explomin Perforaciones, a leading specialty drilling contractor based in Lima, Peru. Explomin is one of the largest South American drilling contractors. Most of Explomin’s operations are in Peru while also servicing markets in Colombia, Dominican Republic, and Spain.

The company acquired all Explomin’s issued and outstanding shares 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.

Major Drilling stated the transaction will provide it with increased exposure to the copper market. Major Drilling will also acquire a fleet of 92 drills, bringing its total rig count to 701. According to the company, Explomin has a strong brand reputation in South America, with over 90% of its revenue derived from senior mining companies.

Denis Larocque, CEO of Major Drilling, stated, “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.”

Major Drilling was established in 1980 and maintains field operations and offices in Canada, the United States, Mexico, South America, Asia, Africa, and Australia.

More information is posted on www.MajorDrilling.com/