Mitchell Services is set to add another acquisition to the contracting business, having secured an agreement for a takeover of Deepcore Drilling.
Deepcore is a privately-owned drilling business that services the mining and infrastructure industries, specialising in technical underground mobile drilling, diamond drilling, acoustic and deep directional drilling.
Mitchell Services will acquire 100 per cent of Deepcore’s equity in exchange for $15 million cash and 250 million of its shares for $0.068 each.
Deepcore Drilling founder and executive director Scott Tumbridge will own approximately 7.2 per cent of Mitchell Services’ shares following the transaction and will also be invited to join the suitor’s board.
Mitchell Services is pleased to welcome someone of Tumbridge’s capability to the company’s board and continue its growth by adding Deepcore to the business.
“With over 20 years’ experience in the Australasian mining and drilling industry, and with a proven track record in business development, innovation and operational excellence, Tumbridge brings a wealth of specialist industry knowledge to Mitchell Services,” the company reported in an ASX announcement.
“Give Deepcore Drilling’s specialist product offerings and its strong exposure to gold in Victoria, the combination of the two businesses will make Mitchell Services one of the largest and most diversified drilling service providers in Australia.”
Deepcore’s current operating structure and brand will remain largely unchanged under its new ownership, as Mitchell believes its existing management team’s quality and expertise will continue the business’ ongoing performance.
Mitchell Services’ past acquisitions include Radco Drilling in 2018, Nitro Drilling in 2015 and Tom Browne Drilling in 2014, as the business continues its growth journey to becoming one of Australia’s most versatile drilling companies.