Tag Archives: Ranger Drilling

Perenti completes DDH1 acquisition, establishes Drilling Services Division

Explosives and blasting, Mining equipment, Mining mergers and acquisitions, Mining services, , , , , , , ,

Perenti says the DDH1 Limited scheme of arrangement has been implemented today, with the ASX company now having acquired 100% of the issued share capital of DDH1.

Following the completion of the transaction, Perenti has now become one of the largest drilling services companies globally, increasing growth opportunities for the business and its people.

When the deal was announced back in June, Perenti estimated it would create the ASX’s leading diversified contract mining services company, with a pro forma market capitalisation of circa A$1.3 billion (pre-synergies and potential re-rate), positioning Perenti for potential ASX200 inclusion. Perenti added that 85% of its revenue base will be from production and resource definition (rather than exploration), with the company holding a modern fleet with over 190 rigs from DDH1 and 99 from Perenti – one of the largest drill fleets globally.

Mark Norwell, Managing Director & Chief Executive Officer of Perenti, said Perenti is pleased to welcome the DDH1 team members who are joining the Perenti Group today and looks forward to working together to continue to deliver value and certainty for all our stakeholders.

“The acquisition of DDH1 is a very important milestone in the continued growth and evolution of Perenti, and we are very pleased to welcome the circa 2,000 DDH1 employees, their four highly respected brands of DDH1 Drilling, Strike Drilling, Ranger Drilling and Swick Mining Services along with their expansive client base into the wider Perenti Group. DDH1 leverages and builds on nearly 40 years of drilling expertise that our Ausdrill brand holds, enabling Perenti to establish a stand-alone Drilling Services Division of significant scale and global relevance. Perenti is now one of the largest drilling services contractors globally offering a complete range of underground and surface drilling services, including specialisation in deep directional drilling.

“With the completion of the acquisition, we look forward to demonstrating the significant value proposition that the combination of Perenti and DDH1 can offer to all our stakeholders, and we expect to provide the market with consolidated financial year 2024 guidance in November.”

Perenti looks to create ASX’s leading diversified contract mining services company with DDH1 buy

Explosives and blasting, Mining equipment, Mining mergers and acquisitions, Mining services, , , , , , , ,

Perenti has entered into an agreement under which it will acquire 100% of the issued share capital of DDH1 Limited, a surface and underground mining contractor, subject to satisfaction of conditions.

DDH1 brings significant capability across a range of specialised surface and underground drilling services that complement Perenti’s existing service offering, Perenti says. This will see it benefit from increased scale, and the ability to leverage the operational and financial strengths of both companies. This will enable improved margins and increased free cash flow, which will accelerate the delivery of our FY25 financial targets.

Following the completion of the transaction, which is subject to DDH1 shareholder approval and other conditions, Perenti will become one of the largest drilling services companies globally, increasing growth opportunities for the business and its people, it says.

Perenti estimated that it would create the ASX’s leading diversified contract mining services company, with a pro forma market capitalisation of circa A$1.3 billion ($868 million, pre-synergies and potential re-rate), positioning Perenti for potential ASX200 inclusion. Perenti added that 85% of its revenue base will be from production and resource definition (rather than exploration), with the company holding a modern fleet with over 190 rigs from DDH1 and 99 from Perenti – one of the largest drill fleets globally.

In 2021, DDH1 combined with Swick Mining Services to create, they said, a global scale mineral drilling business with a balance of surface and underground services.

Mark Norwell, Managing Director & CEO of Perenti, said: “This is a compelling transaction that represents an exciting next step in delivering on Perenti’s purpose, to create enduring value and certainty, by building a portfolio of complementary high quality businesses.

“Perenti has a long history in drilling from its Ausdrill heritage and Barminco Diamond Drilling business and understands the attractiveness of the market.

“The long-term outlook for a sustained production cycle needs increased drilling spend to ensure mining reserves are not diminished, and drilling is becoming more complex, resulting in larger programs and demand for specialist services.

“DDH1 is a highly respected Tier 1 global operator, with significant capabilities across a complete range of specialised surface and underground drilling services, that are complementary to our existing clients and service offering.

“We have a clearly articulated framework against which we assess all investment opportunities, with this transaction addressing our key assessment criteria in relation to strategic attractiveness, fit within Perenti and value creation potential.”

Following the transaction, the DDH1 business will form part of a newly created Drilling Services Division, which will also comprise Perenti’s existing Ausdrill business. Sy Van Dyk (current Managing Director & CEO of DDH1), will be appointed as President of the newly created division. Each of the four existing DDH1 brands, DDH1 Drilling, Ranger Drilling, Strike Drilling and Swick Mining Services, will be maintained and led by their existing leadership teams, with a focus on providing a consistent offering and customer continuity.

Perenti hopes to close the deal in October based on its indicative timetable.

DDH1 after WA iron ore contract growth with Ranger Drilling acquisition

Mining equipment, Mining mergers and acquisitions, Mining services, Steel and iron ore, , , , , , , , , , ,

DDH1 Holdings says it has acquired Ranger Drilling as it looks to grow the Australia iron ore RC drilling specialist’s business.

DDH1 Holdings now consists of three drilling businesses, namely DDH1 Drilling, Strike Drilling and Ranger Drilling.

Ranger was established in 2005 by Matt and Julie Izett and specialises in providing reverse Circulation (RC) drilling services to customers operating in the Western Australian iron ore market.

DDH1 Chief Executive Officer, Sy van Dyk, said: “Ranger will continue operating as a separate company, under the same management from the same premises. DDH1’s intention is to continue to grow the Ranger brand, while preserving their culture of leadership, productivity, innovation and safety. These are the qualities that attracted our investment in Ranger and we want to ensure it is protected and fostered going forward.”

Ranger’s Managing Director, Matt Izett, said: “DDH1 is a natural partner for Ranger to further our growth ambitions by providing additional capital to the business in a cost-effective and disciplined manner. I look forward to continue leading and growing the business Julie and I founded in 2005 and to deliver superior drilling solutions to our loyal customer base, whilst contributing at a senior level to the wider group’s operations”.

DDH1 Drilling, Strike Drilling and Ranger’s capabilities are highly complementary, DDH1 said, and the combination of the businesses provides the opportunity to offer clients the full suite of drilling services required across the resource life cycle, from discovering new deposits to extending existing mine lives. “The group’s drill rig fleet is modern, standardised and highly productive,” the company said.

DDH1 Managing Director, Murray Pollock, said: “DDH1 and Ranger have worked together on a shared contract basis, during which time we have observed Ranger’s premium customer service offering, the productivity gains delivered by their modern fleet and quality management team led by Matt Izett. Together, we are committed to being the drilling contractor and employer of choice in the Australian drilling industry.

“The group now has 84 Tier One drill rigs and employs over 700 staff to provide our customers with end-to-end drilling solutions. I am also pleased that as part of the transaction Matt and Julie Izett will become significant shareholders in DDH1 Holdings and we look forward to working with them.”