McKay Drilling today announces it has entered into an agreement to be acquired by global drilling services company Major Drilling Group International Inc. (TSX:MDI) in a transaction worth up to $80 million.
Major Drilling Group is one of the world’s largest drilling services companies primarily serving the mining industry, with operations throughout Canada, the United States, Mexico, South America, Asia, and Africa. The acquisition represents a strategic entry into Australia’s buoyant mining and exploration sector where demand for drilling and associated mining services continues to grow.
“We are very excited to welcome McKay and its employees into the Major Drilling group,” said Denis Larocque, President & CEO of Major Drilling. “This acquisition is a meaningful part of our growth strategy and provides us a strong foothold in an important growth market with high barriers to entry. In addition to a fleet of state-of-the-art rigs, we are acquiring a highly-experienced team with local knowledge and longstanding relationships and existing contracts with leading blue-chip mining companies.”
Founded in Kalgoorlie in 1990 and now headquartered in Wangara, McKay Drilling today employs more than 200 people, operates a fleet of high-calibre track and truck mounted drill rigs, and has longstanding partnerships with Tier 1 miners.
Becoming part of the Major Drilling Group will see McKay Drilling retain its existing brand and experienced team, led by founder and Managing Director Mark McKay.
“I am very proud to announce the sale of McKay Drilling to Major Drilling Group International,” commented Mark McKay on the merger. “Since its inception, McKay Drilling has worked to set the standard in the Australian drilling industry, and this transaction is testament to the quality of the business and its reputation.”
“Major Drilling is a great fit for McKay in terms of its capabilities, values, and culture. We both agree that a company is only as good as its people and I’m proud of the fantastic team we’ve built. I would like to thank all of our staff for their hard work, grit, and dedication in growing our business to where it is today, our clients for their continued support, and BDO Perth’s Mergers and Acquisitions Team for their guidance throughout the sale. I am excited to see what lies ahead in our next chapter as part of the Major Group.”
Major Drilling Group International’s underground and mine services solutions and McKay Drilling’s reverse circulation and diamond drilling capabilities are highly complementary, and the combination will benefit clients across the entire project life cycle, from resource definition to mine life extension.