Major Drilling adds 8 dewatering rigs with Bunbury deal

Major Drilling Group International Inc. bought Bunbury Drilling Company for A$50 million upfront and as much as A$20 million more, the company said in a Nov. 2 press release.

The deal moves Major Drilling into specialized mine dewatering in Western Australia, where BDC generated about A$43 million of revenue and A$15 million of adjusted EBITDA in the 12 months ended June 30, 2026, according to the release. That compares with the roughly A$18 million average annual EBITDA BDC must reach over the three-year earn-out period for the full contingent payment.

Major Drilling said the acquisition was made through its Australian subsidiary, Major Drilling Pty Ltd. Total consideration may reach A$70 million, or about C$69 million, and the company said the upfront payment was funded with existing cash and debt facilities.

BDC, based in Bunbury, Western Australia, owns eight specialized drills built for mine dewatering work, Major Drilling said. Mine dewatering drilling supports the removal and management of water at mine sites, a service the company described as technically demanding and equipment-intensive.

“We are very excited to welcome BDC and its employees into the Major Drilling group,” Denis Larocque, Major Drilling’s president and chief executive officer, said in the press release. He said the purchase adds a specialized drilling service for senior mining companies in an established market.

Bunbury Drilling has more than 70 years of operating history, according to Major Drilling. The company said BDC drills exclusively for senior producers in Western Australia, and that BDC’s management team will remain in place after the transaction.

An earn-out is a contingent payment tied to future performance. Under the agreement, Major Drilling may pay as much as A$20 million in cash over the next three years if BDC reaches specified EBITDA milestones.

Major Drilling describes itself as the world’s largest provider of drilling services to the metals and mining industry, with operations and offices across North America, South America, Australia, Asia, Africa and Europe. Its services include reverse circulation, surface and underground coring, directional, sonic, geotechnical, environmental and water-well drilling.

The company said the acquisition is expected to be immediately accretive to earnings per share, meaning it expects the deal to lift EPS from the outset. That statement is forward-looking, and the release cited risks including mining-sector activity, demand for Major Drilling’s services, skilled-labour availability, currency movements, acquisition integration and customer concentration.

BDC’s revenue figure came from unaudited financial statements for the fiscal year ended June 30, 2026, which were not prepared under IFRS, though Major Drilling said IFRS revenue would not change materially. Adjusted EBITDA, or earnings before interest, taxes, depreciation and amortization after company adjustments, is a non-IFRS measure and may not be comparable with similar measures used by other issuers.

Major Drilling said the acquisition does not require regulatory approvals.

Milestones to track

• Over the three-year earn-out period after the Nov. 2 announcement, BDC must reach average annual EBITDA of about A$18 million for sellers to receive the full A$20 million contingent payment.

• From closing, Major Drilling expects the acquisition to be immediately accretive to earnings per share, a forward-looking target tied to integration, demand and operating performance.

• The upfront A$50 million payment is subject to working-capital adjustments, according to the agreement terms described by Major Drilling.

Source: press release, Major Drilling Group International Inc., Nov. 2, 2026