Mark Norwell, managing director and CEO of Perenti, said: "This is a compelling transaction that represents an exciting next step in delivering on Perenti's purpose, to create enduring value and certainty by building a portfolio of complementary high-quality businesses.
"Perenti has a long history in drilling from its Ausdrill heritage and Barminco Diamond Drilling business and understands the attractiveness of the market.
"The long-term outlook for a sustained production cycle needs increased drilling spend to ensure mining reserves are not diminished, and drilling is becoming more complex, resulting in larger programmes and demand for specialist services.
Perenti has a long history in drilling
"DDH1 is a highly respected tier 1 global operator with significant capabilities across a complete range of specialised surface and underground drilling services that are complementary to our existing clients and service offering.
"We have a clearly articulated framework against which we assess all investment opportunities, with this transaction addressing our key assessment criteria in relation to strategic attractiveness, fit within Perenti and value creation potential."
Following the Transaction, the DDH1 business will form part of a newly created Drilling Services Division, which will also comprise Perenti's existing Ausdrill business. Sy Van Dyk (current managing director and CEO of DDH1) will be appointed as president of the newly created division. Each of the four existing DDH1 brands, DDH1 Drilling, Ranger Drilling, Strike Drilling and Swick, will be maintained and led by their existing leadership teams, with a focus on providing a consistent offering and customer continuity.
Rob Cole, chair of Perenti, added: "We look forward to welcoming the DDH1 team to Perenti and working together to deliver on the significant value upside that will be delivered from this transaction. Sy and the DDH1 management team are highly experienced executives leading a globally respected operator, which will continue as part of our newly established Drilling Services Division."
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