Dynamic Drill and Blast Holdings (DDB) has agreed to acquire Orlando Drilling for around $21.4 million, a deal that will more than double the company’s drill rig fleet.
Orlando’s clients include Fortescue Metals Group, Gold Fields, Anglo Australian and Northern Star Resources, with the acquisition expected to create DDB around $30 million in revenue.
Orlando was founded in 2007 in Western Australia and DDB will gain all 17 of its rigs for air core, reverse circulation and diamond drilling.
DDB managing director Mark Davis said the acquisition is ideal for the company going forward.
“Orlando is an excellent strategic fit for Dynamic and we are very excited to leverage the complementary service offering, asset and customer base, and expertise of the team to continue to drive growth and shareholder value,” Davis said.
Late last year, DDB added AngloGold Ashanti and GWR Group to its list of clients for drilling services, while Pilbara Resources appointed the company for blasting services.
Both drilling contracts added $20 million to DDB’s books and required up to four drill rigs, around 20 personnel and ancillary equipment.
On the acquisition, Orlando co-founders David Kinnersley and Joel Skipworth issued a joint statement which indicated how mutually beneficial the deal would be.
“Orlando has grown rapidly over the past few years, however joining forces with Dynamic will really position us for future growth and provides a stronger platform to better service our combined blue-chip client base,” the co-founders stated.
“The combination allows us to provide a full end-to-end service for our customers, while maintaining excellence in safety, quality and delivery. Furthermore, the larger fleet base allows us greater capacity to meet customer requirements.”
DDB will pay an upfront $4.5 million in cash and 37.5 million DDB shares for the acquisition.