Perenti and DDH1 have entered into an agreement that will give the former company 100% of DDH1 shares, adding significant breadth to Perenti’s range of surface and underground drilling services.
The capabilities of DDH1, which Perenti said complement its existing service offerings, will allow it to realize operational and financial benefits as it pushes towards its own FY2025 targets.
The deal is subject to the satisfaction of conditions including DDH1 shareholder approval. Once complete, it will make Perenti one of the largest drilling services companies globally.
Following completion of 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 president of the newly created division.
Each of the four existing DDH1 brands, DDH1 Drilling, Ranger Drilling, Strike Drilling and Swick Mining Services, will be maintained and led by their existing leadership teams.
Perenti Managing Director and CEO Mark Norwell said the deal is “a compelling transaction that represents an exciting next step in delivering on Perenti’s purpose, to create enduring value and certainty” by building on its portfolio of complementary 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 programs and demand for specialist services,” he added.
“DDH1 is a highly respected tier 1 global operator, with significant capabilities across a complete range of specialized surface and underground drilling services, that are complementary to our existing clients and service offering.
Source: Perenti