Business
Foraco International solidifies its position in Russia by closing acquisition of controlling interest in EDC
Foraco International solidifies its position in Russia by closing acquisition of controlling inte...
About this update from Foraco International Sa
[{"type":"text","content":"\n\n\n\n Jun. 16, 2010 (Canada NewsWire Group) -- /NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES NOR FOR DISSEMINATION IN THE UNITED STATES/\n\n Foraco International SA (the "Company" or "Foraco"), a leading global provider of diversified drilling services, today announced it has fully completed the acquisition of a 50% controlling interest in LLC Eastern Drilling Company ("EDC") from Russia.\nEDC has operated diamond drilling services for major and junior foreign and Russian companies in the mining industry in the Russian territory since 2007. Headquartered in Moscow, EDC's operational facilities are located in Far East Russia and Eastern Siberia where many mining developments are located or managed.\n"Following our successful launch into northwest Russia in 2009, we are pleased to have now established a permanent presence in Russia and the CIS countries," said Daniel Simoncini, Chairman and Chief Executive Officer of Foraco. "This deal is significantly increasing our growth potential in the region. We also foresee global opportunities through providing continued services to our Russian-based customers when they operate in other jurisdictions."\n"It is gratifying to see Foraco close two important acquisitions in a matter of weeks that strengthen our global footprint - first in Latin America with the Adviser acquisition, and now, in Russia with EDC. We are expecting EDC to generate approximately US$10 million revenue in 2010 from its existing customer contracts" said Jean-Pierre Charmensat, co-CEO and Chief Financial Officer added.\nEDC's fleet consists of six modern diamond drill rigs and ancillary equipment, supported by skilled managers and workers.\nEDC's founders and present managers will retain a 50% (non-controlling) interest and will continue managing and developing EDC. Foraco will bring new drilling technologies, management, technical, financial and operational support to EDC and will support EDC's development.\n\nAbout Foraco International SA\n\nForaco International SA (TSX: FAR) is a global leading drilling services company that provides turnkey solutions for mining, energy, water and infrastructure projects. Supported by its founding values of integrity, innovation and involvement, Foraco has grown into a global enterprise with operations in 19 countries a...