TORONTO AND MARSEILLE, France, Nov. 19, 2012 /CNW/ - Foraco International SA (the "Company" or "Foraco"), a leading global provider of mineral drilling services, is pleased to announce the acquisition of Australian mineral drilling services company JOHN NITSCHKE Drilling, ("JND") under the conditions previously disclosed on September 24, 2012, for approximately US$60 million through a combination of cash and warrants giving the right to acquire a certain number of Foraco shares.
On November 15, 2012, Foraco's shareholders approved the issuance of up to 7,000,000 warrants to acquire shares of Foraco.
With this acquisition, Foraco now has a fleet of 308 rigs in 23 countries spanning 5 continents, with a workforce of approximately 3,800 employees.
Headquartered in Hahndorf and privately owned, JND has activities in all of the main mining states in Australia: specifically performing operations in Western Australia, Queensland, New South Wales and South Australia. With a fleet of 15 rigs, JND generated approximately US$ 49 million during the twelve months ending June 30, 2012, with an EBITDA margin of 26.7%. JND's CEO, Jonathan Nitschke will join Foraco Australia and will take the position of General Manager for Australian operations.
"We are extremely pleased to have closed the JND acquisition, strengthening our existing position in Australia by adding new regional markets and access to additional commodities and customers. We enthusiastically welcome JND's managers and employees to our company and look forward to working together in one of the most active mining jurisdictions in the world." says Daniel Simoncini, Foraco's Chairman and Chief Executive Officer.
Jean-Pierre Charmensat, Foraco's co-CEO and Chief Financial Officer adds, "JND's focus on providing high quality services to major mining and energy clients are in line with Foraco values, and we expect to quickly consolidate and synergize operations. Historically, JND has shown an impressive track record of growth, profitability, innovation and has developed excellent client relationships in a very demanding market. We believe this acquisition to be immediately accretive to our shareholders.
Jonathan Nitschke, General Manager expressed, "We are excited to join the Foraco team and to start working together to develop a stronger presence in the Australian market. At JND our priority has been on providing exceptional customer service based on top safety performance, utilizing modern and efficient drilling techniques with the support of a highly skilled workforce. Foraco shares these same values and brings to JND a global perspective along with additional drilling expertise which will result in a better customer experience overall".
About Foraco International SA
Foraco International SA (TSX: FAR) is a leading global mineral drilling services company that provides a comprehensive and reliable service offering in mining and water projects. Supported by its founding values of integrity, innovation and involvement, Foraco has grown into the third largest global drilling enterprise with a presence in 23 countries across five continents. For more information about Foraco, visit www.foraco.com.
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SOURCE Foraco International SA