Business
Foraco International SA closes acquisition of Servitec, Brazil's second-largest mineral drilling services company
TORONTO and MARSEILLE, France, April 23, 2012 /CNW/ - Foraco International SA (the "Company...
About this update from Foraco International Sa
[{"type":"text","content":"\n\n\n\n\n\nTORONTO and MARSEILLE, France, April 23, 2012 /CNW/ - Foraco\n International SA (the \"Company\" or \"Foraco\"), a leading global provider\n of mineral drilling services, is pleased to announce the acquisition of\n 51% of Brazilian mineral drilling services company WFS Sondagem LTDA,\n (\"Servitec\") under the conditions previously disclosed on March 2,\n 2012, for an amount of approximately US$43 million through a\n combination of cash and Foraco shares.\n\n\nOn April 16, 2012, Foraco's shareholders approved the issuance of\n 3,516,509 new shares to bring the total number of shares to 78,195,259\n basic and 82,951,798 on a fully diluted basis.\n\n\nWith this acquisition, Foraco has a total of 278 rigs in 23 countries\n served by 3600 employees, spanning five continents, and has access to\n 76% of the world's mineral drilling services market. Headquartered in\n Crixas, Goias State and privately owned, Servitec is the second-largest\n mineral drilling services company in Brazil, with activities in all of\n the main mining states: Minas Gerais, Goias, Para and Mato Grosso. \n With 86 rigs, Servitec generated approximately US$70 million in revenue\n in 2011, with an EBITDA margin of 23%. Servitec's current shareholders\n and managers will continue managing and developing Servitec.\n\n\n\"We are extremely pleased to have closed the Servitec acquisition,\n adding this major mining market to our operations map and we\n enthusiastically welcome Servitec's managers and personnel to our\n company.\" says Daniel Simoncini, Foraco's Chairman and Chief Executive\n Officer. Jean-Pierre Charmensat, Foraco's co-CEO and Chief Financial\n Officer adds, \"This immediately accretive acquisition offers us\n exciting opportunities in Brazil, and we expect to quickly consolidate\n and synergize operations.\"\n\n\nWalid Khaoule and Fernando Paiva, Servitec's Co-Managing Directors, have\n expressed, \"We are very happy to be joining the Foraco team. Foraco's\n expertise in engineering custom drill rigs, working in complex and deep\n geological environments, and their comprehensive corporate social\n responsibility policies are important and complementary skills we look\n forward to offering our clients. Our future focus will be on enhancing\n our current operations, and expanding the depth of our services in the\n Brazilian market. We ...