Boart Longyear is selling certain of its sub-Saharan African operations to Tranter Energy and Mining Services, a subsidiary of Tranter Holdings. The business, to be renamed Tranter Rock Drills, consists of Boart Longyear’s percussive rock drills and hard rock tools product lines for sub-Saharan Africa as well as all manufacturing operations in Roodepoort, South Africa. The business generated some $14 million in revenues in 2008. Boart Longyear will continue to supply rock drills and hard rock tools outside of the sub-Saharan Africa region, and under the terms of the sale, Tranter Rock Drills will become Boart Longyear’s exclusive supplier of rock drills for a two-year period.
Craig Kipp, CEO, commented, “The sale of this part of our sub-Saharan Africa business is consistent with our ongoing strategy to divest select non-core assets. We have also taken actions to transfer the manufacturing of several product lines to outsourced suppliers. As a result of this transaction, we are able to remain in the rock drill business outside of Africa with improved production flexibility and reduced fixed costs. This will allow us to supply high-quality rock drills to our global customers.”
Johannesburg will remain as the sub-Saharan Africa regional sales headquarters for Boart Longyear along with its distribution point for the region for exploration drilling products as well as drill rigs and consumables for the construction, overburden and percussive drilling industries.
Boart Longyear is a 120-year-old global organisation registered in Adelaide, Australia, and headquartered in Salt Lake City, Utah, with offices and operations in Asia Pacific, North and South America, Europe and Africa. The company is a leading provider of drilling services and drilling products for the global mining industry, and also has a substantial presence in drilling for other purposes, including water exploration, environmental and oil sands exploration. With 2008 sales of over $1.8 billion and about 7,000 employees worldwide, the company conducts contract drilling services in more than 35 countries and provides mining products to customers in over 100 countries.
Tranter Holdings is a black owned and managed investment company, registered in South Africa that has a focus on the mining and energy industries in Sub-Saharan Africa. It currently owns investments in several resources companies. Tranter Rock Drills will be its second acquisition in its energy and mining services subsidiary.