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Major Drilling Announces The Acquisition of Bradley Group

By September 8, 2011No Comments

MONCTON, New Brunswick (September 8, 2011) – Major Drilling Group International Inc. (“Major Drilling” or the “Corporation”) (TSX: MDI) is pleased to announce that it has entered into an agreement to acquire all of the issued and outstanding shares of Bradley Group Limited (“Bradley Group”) (the “Acquisition”), a family-owned drilling company based in Rouyn Noranda, Quebec (Canada), for an aggregate purchase price of $80 million (the “Purchase Price”), subject to adjustments and subject to certain customary closing conditions. $72 million of the Purchase Price will be payable in cash at the closing of the Acquisition with the balance of $8 million being subject to a hold-back over 3 years. In addition, at the closing of the Acquisition, the Corporation expects to repay a portion of the indebtedness of Bradley Group under its credit facilities in the amount of approximately $10 million, and the remaining portion of such indebtedness in the amount of approximately $5 million will effectively be assumed by the Corporation. The Acquisition and other related transaction costs are being financed through a $70 million “bought deal” public offering of subscription receipts and new and extended credit facilities of $100 million in aggregate.

Acquisition of Bradley Press Release