Major Drilling Group International Inc has announced that it has entered into an agreement to acquire all of the issued and outstanding shares of McKay Drilling Pty Ltd, a leading speciality drilling contractor based in Perth, Australia for an amount up to A$80 million, or approximately C$75 million. Founded in 1990, McKay is considered a leader in reverse circulation drilling and operates a state-of-the-art fleet of 15 high-capacity truck and track mounted reverse circulation rigs from Schramm and five LF350 truck mounted deep-hole diamond rigs from Boart Longyear with the most advanced hands-free remote operation and monitoring technology.
The statement said: “McKay’s fleet is at the very high end of specialised drilling equipment and includes support equipment and inventories necessary for its operation. The company is widely regarded as an innovator in the Australian mining industry and has long-standing relationships with Australia’s largest mining companies.” For the twelve-month period ending March 31, 2021, McKay generated revenue of approximately A$60 million and EBITDA of approximately A$17 million.
“We are very excited to welcome McKay and its employees into the Major Drilling group. McKay has a well-established brand in Australia, particularly among mining majors, that is built on decades of delivering innovation and high-quality service to its clients,” 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 long-standing relationships and existing contracts with leading blue chip mining companies. Finally, 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.”
“Joining Major Drilling represents an exciting new chapter for our business,” said Mark McKay, Managing Director and Founder of McKay Drilling. “Since inception, McKay Drilling has set the standard in the Australian drilling industry. Denis and I agree that a company is only as good as the people working within it, and I’m proud of the fantastic team we have built. 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. I would like to thank all of our staff for their hard work and dedication in helping to grow our business to where it is today and our clients for their continued support. Major Drilling’s global expertise and financial strength will allow us to continue our progress in developing innovative solutions for our industry and remain a leader in the Australian market for decades to come.”