TORONTO and MARSEILLE, France, May 27 /CNW/ - Foraco International SA (the "Company" or "Foraco"), a leading global provider of diversified drilling services, is pleased to announce that it has completed the acquisition of all of the outstanding shares of Adviser Drilling SA (the "Acquisition") previously announced on March 9, 2010.
Adviser provides diamond and reverse circulation drilling services since
2005 for major and junior mining companies in Chile, Argentina, Mexico and Peru. Headquartered in Santiago Chile, Adviser has subsidiaries in Argentina, Mexico and Peru. Adviser's fleet consists of 51 modern diamond and reverse circulation drill rigs as well as ancillary equipment, supported by skilled managers and workers. Adviser generated approximately
US$59 million revenue in 2009.
The Acquisition was overwhelmingly approved by the shareholders of Foraco at a meeting of its shareholders held on May 18, 2010. Shareholders also approved, concurrently with closing of the Acquisition, an increase to the size of the Board of Directors of Foraco to seven (7) directors with the appointment of each of Jorge Hurtado and Gonzalo van Wersch, both former directors of Adviser.
"We enthusiastically welcome Adviser's shareholders, managers and personnel to our Company. Our prior experience integrating new groups within our own has prepared us well for bringing on Adviser very smoothly.
There are many synergies between our businesses and we'll be consolidating operations methodically without delay. This is a major step forward for Foraco as we continue building a world class drilling services company.
Foraco now ranks 3rd in terms of revenue in the global mining exploration drilling space," said Daniel Simoncini, Chairman and Chief Executive Officer of Foraco. "This deal will enable us to significantly improve the global range of services we offer to our customers as well as our market reach through operations in more than 20 countries and access to 72% of the worldwide exploration market."
Jean-Pierre Charmensat, co-CEO and Chief Financial Officer added, "Via this acquisition, we expect to strengthen our business model that offers our customers one of the best 'tool boxes' in the industry and provides reliable, cost effective and innovative services in one company that will manage all of their drilling requirements. We believe that the addition of Adviser to Foraco will be accretive in the short term, thanks to significant business synergies which will be implemented by an excellent team. We welcome the two new Directors to our Board as we look forward to growing value for our shareholders."
Source: Canada Newswire