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TORONTO and MARSEILLE, France, May 27 /CNW/ - Foraco International SA (the "Company" or "Foraco"), a leading global provider of diversified drilling services, is pleased to announce that it has completed the acquisition of all of the outstanding shares of Adviser Drilling SA (the "Acquisition") previously announced on March 9, 2010.
Adviser provides diamond and reverse circulation drilling services since 2005 for major and junior mining companies in Chile, Argentina, Mexico and Peru. Headquartered in Santiago Chile, Adviser has subsidiaries in Argentina, Mexico and Peru. Adviser's fleet consists of 51 modern diamond and reverse circulation drill rigs as well as ancillary equipment, supported by skilled managers and workers. Adviser generated approximately US$59 million revenue in 2009.
The Acquisition was overwhelmingly approved by the shareholders of Foraco at a meeting of its shareholders held on May 18, 2010. Shareholders also approved, concurrently with closing of the Acquisition, an increase to the size of the Board of Directors of Foraco to seven (7) directors with the appointment of each of Jorge Hurtado and Gonzalo van Wersch, both former directors of Adviser.
"We enthusiastically welcome Adviser's shareholders, managers and personnel to our Company. Our prior experience integrating new groups within our own has prepared us well for bringing on Adviser very smoothly. There are many synergies between our businesses and we'll be consolidating operations methodically without delay. This is a major step forward for Foraco as we continue building a world class drilling services company. Foraco now ranks 3rd in terms of revenue in the global mining exploration drilling space," said Daniel Simoncini, Chairman and Chief Executive Officer of Foraco. "This deal will enable us to significantly improve the global range of services we offer to our customers as well as our market reach through operations in more than 20 countries and access to 72% of the worldwide exploration market."
Jean-Pierre Charmensat, co-CEO and Chief Financial Officer added, "Via this acquisition, we expect to strengthen our business model that offers our customers one of the best 'tool boxes' in the industry and provides reliable, cost effective and innovative services in one company that will manage all of their drilling requirements. We believe that the addition of Adviser to Foraco will be accretive in the short term, thanks to significant business synergies which will be implemented by an excellent team. We welcome the two new Directors to our Board as we look forward to growing value for our shareholders."
About Foraco International SA
Foraco 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 over 20 countries across five continents. For more information about Foraco, visit www.foraco.com.
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Caution concerning forward-looking statements
This document contains "forward-looking statements" and "forward-looking information" within the meaning of applicable securities laws, including the Company's expectations regarding Adviser's revenues. These statements and information include estimates, forecasts, information and statements as to Management's expectations with respect to, among other things, the future financial or operating performance of the Company and capital and operating expenditures. Often, but not always, forward-looking statements and information can be identified by the use of words such as "may", "will", "should", "plans", "expects", "intends", "anticipates", "believes", "budget", and "scheduled" or the negative thereof or variations thereon or similar terminology. Forward-looking statements and information are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Management, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Readers are cautioned that any such forward-looking statements and information are not guarantees and there can be no assurance that such statements and information will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed under the heading "Risk Factors" in the Company's Annual Information Form dated March 31, 2009, which is filed with Canadian regulators on SEDAR (www.sedar.com). The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements and information whether as a result of new information, future events or otherwise. All written and oral forward-looking statements and information attributable to Foraco or persons acting on our behalf are expressly qualified in their entirety by the foregoing cautionary statements.
SOURCE Foraco International SA
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