- Major Drilling (MDI) has acquired McKay Drilling PTY Limited, a leading Australian specialty drilling contractor
- The company will pay C$75 million in cash and shares for the acquisition, which will be immediately accretive on an earnings per share basis
- McKay is considered a leader in reverse circulation drilling with Au$60 million in revenue over the twelve months ending March 31, 2021
- The acquisition is expected to close on or about June 1, 2021
- Major Drilling Group International is one of the world’s largest drilling services companies
- Major Drilling (MDI) is up by 6.92 per cent and is currently trading at $9.89 per share
Major Drilling (MDI) has acquired McKay Drilling PTY Limited, a leading Australian specialty drilling contractor.
The company will pay C$75 million in cash and shares for the acquisition, which will be immediately accretive on an earnings per share basis and provide Major Drilling a strong established presence in an important growth market.
Founded in 1990, McKay is considered a leader in reverse circulation drilling. It operates a state-of-the-art fleet of 15 high-capacity reverse circulation rigs and five deep-hole diamond rigs with hands-free remote operation and monitoring technology.
McKay generated revenue of approximately Au$60 million and EBITDA of approximately Au$17 million for the twelve months ending March 31, 2021.
The acquisition is expected to close on or about June 1, 2021.
Denis Larocque, President and CEO of Major Drilling, commented,
“McKay and Major Drilling have very similar cultural and operational values and approaches, along with a strong commitment to sustainable resource development, consistent with our global ESG framework.
With McKay’s operational management team remaining in place, Major Drilling will be in a strong position to service customers in both reverse circulation and diamond drilling services in the very active Western Australian market.”
Mark McKay, founder and Managing Director of McKay Drilling, added,
“Major Drilling is a great fit for McKay in terms of capabilities, values and culture, and I am looking forward to seeing our team grow to new heights together.”
Major Drilling Group International is one of the world’s largest drilling services companies primarily serving the mining industry. The company maintains field operations and offices in Canada, the United States, Mexico, South America, Asia and Africa.
Major Drilling (MDI) is up by 6.92 per cent and is currently trading at $9.89 per share as of 1:32 pm ET.