MONCTON, N.B. — Major Drilling Group International Inc. has signed a deal to acquire Norex Drilling Ltd., a family-owned drilling company based in Timmins, Ont., for $19.7 million in cash and stock.
Under the deal, Major Drilling has agreed to pay $15.2 million in cash on closing of the deal and $2.0 million in Major Drilling shares, valued on the closing of the transaction.
The agreement also includes $2.5 million payable in cash following the third anniversary of closing.
Major Drilling is expected to keep Norex's 120 employees including its management team as well as its drillers and other personnel.
The company will also acquire 22 drill rigs, including 17 compatible specialized surface drill rigs and five underground drills.
The deal is expected on Nov. 1, subject to customary closing conditions.
This report by The Canadian Press was first published Oct. 7, 2019.
Companies in this story: (TSX:MDI)
The Canadian Press