Epiroc to acquire Canadian exploration tools manufacturer
Epiroc has agreed to acquire Canadian-based Fordia Group Inc., a manufacturer of exploration drilling tools. The deal is expected to strengthen Epiroc's position in the mining exploration segment.
Epiroc, a provider of productivity solutions for the mining, infrastructure, and natural resources industries, has announced an agreement to acquire Fordia Group Inc. The Canadian company, based in Montreal, manufactures exploration drilling tools including diamond bits, down-the-hole tools, drill rods, and casings.
The acquisition will add Fordia's product portfolio, which also includes water treatment systems and pumps, to Epiroc's Rock Drilling Tools division. Fordia operates in over 70 countries, serving mining houses and drilling contractors. For the 12 months ending September 2018, Fordia reported revenues of approximately CAD 85 million.
Epiroc stated the acquisition is strategically important for increasing its focus on the exploration segment. Helena Hedblom, Epiroc’s Senior Executive Vice President Mining and Infrastructure, commented that Fordia's team will be key in strengthening the company's customer offerings.
The transaction is anticipated to close in the first quarter of 2019. Financial terms were not disclosed, but Epiroc noted the purchase price is not material relative to its market capitalization. Fordia will continue to operate from Montreal as part of Epiroc.