Major Drilling buys Timmins-based contractor Norex
Drilling services company Major Drilling has acquired family-owned drilling company Norex Drilling from Timmins, Ontario for $19.7-million.
Major Drilling CEO Denis Larocque said on Monday that the acquisition was a “unique opportunity” to gain a position in surface and underground exploration drilling services in the prolific north-eastern Ontario region.
“We are very excited to welcome Norex and its 120 employees into the Major Drilling group. Norex has been operating successfully in the Ontario marketplace for some 40 years, and has a solid reputation with its clients,” said Larocque.
Major Drilling is retaining the management team, is gaining access to skilled and experienced drillers and personnel, and is taking over existing contracts. Through the purchase, Major Drilling will also acquire an additional 22 drill rigs, including 17 compatible specialised surface drill rigs and five underground drills, together with related support equipment and inventory.
For the last two years, Norex had average yearly revenue of about $21-million.
The purchase will consist of a $15.2-million cash payment, $2-million in shares and an earn-out of $2.5-million payable in cash following the third anniversary of closing.
The acquisition is expected to close on or about November 1.
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