TORONTO and MARSEILLE, France, April 23, 2012 /CNW/ - Foraco International SA (the "Company" or "Foraco"), a leading global provider of mineral drilling services, is pleased to announce the acquisition of 51% of Brazilian mineral drilling services company WFS Sondagem LTDA, ("Servitec") under the conditions previously disclosed on March 2, 2012, for an amount of approximately US$43 million through a combination of cash and Foraco shares.
On April 16, 2012, Foraco's shareholders approved the issuance of 3,516,509 new shares to bring the total number of shares to 78,195,259 basic and 82,951,798 on a fully diluted basis.
With this acquisition, Foraco has a total of 278 rigs in 23 countries served by 3600 employees, spanning five continents, and has access to 76% of the world's mineral drilling services market. Headquartered in Crixas, Goias State and privately owned, Servitec is the second-largest mineral drilling services company in Brazil, with activities in all of the main mining states: Minas Gerais, Goias, Para and Mato Grosso. With 86 rigs, Servitec generated approximately US$70 million in revenue in 2011, with an EBITDA margin of 23%. Servitec's current shareholders and managers will continue managing and developing Servitec.
"We are extremely pleased to have closed the Servitec acquisition, adding this major mining market to our operations map and we enthusiastically welcome Servitec's managers and personnel to our company." says Daniel Simoncini, Foraco's Chairman and Chief Executive Officer. Jean-Pierre Charmensat, Foraco's co-CEO and Chief Financial Officer adds, "This immediately accretive acquisition offers us exciting opportunities in Brazil, and we expect to quickly consolidate and synergize operations."
Walid Khaoule and Fernando Paiva, Servitec's Co-Managing Directors, have expressed, "We are very happy to be joining the Foraco team. Foraco's expertise in engineering custom drill rigs, working in complex and deep geological environments, and their comprehensive corporate social responsibility policies are important and complementary skills we look forward to offering our clients. Our future focus will be on enhancing our current operations, and expanding the depth of our services in the Brazilian market. We have built a strong and profitable business in Brazil, and are looking forward to growing it even further, in the years to come."
About Foraco International SA
Foraco International SA (TSX: FAR) is a leading global mineral drilling services company that provides a comprehensive and reliable service offering in mining and water projects. Supported by its founding values of integrity, innovation and involvement, Foraco has grown into the third largest global drilling enterprise with a presence in 23 countries across five continents. For more information about Foraco, visit www.foraco.com.
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