TORONTO and
MARSEILLE, France, April 23, 2012 /PRNewswire/ - Foraco
International SA (the "Company" or "Foraco"), a leading global
provider of mineral drilling services, is pleased to announce the
acquisition of 51% of Brazilian mineral drilling services company
WFS Sondagem LTDA, ("Servitec") under the conditions previously
disclosed on March 2, 2012, for an
amount of approximately US$43 million
through a combination of cash and Foraco shares.
On April 16, 2012,
Foraco's shareholders approved the issuance of 3,516,509 new shares
to bring the total number of shares to 78,195,259 basic and
82,951,798 on a fully diluted basis.
With this acquisition, Foraco has a total of 278
rigs in 23 countries served by 3600 employees, spanning five
continents, and has access to 76% of the world's mineral drilling
services market. Headquartered in Crixas, Goias State and privately
owned, Servitec is the second-largest mineral drilling services
company in Brazil, with activities
in all of the main mining states: Minas Gerais, Goias, Para and
Mato Grosso. With 86 rigs,
Servitec generated approximately US$70
million in revenue in 2011, with an EBITDA margin of 23%.
Servitec's current shareholders and managers will continue managing
and developing Servitec.
"We are extremely pleased to have closed the
Servitec acquisition, adding this major mining market to our
operations map and we enthusiastically welcome Servitec's managers
and personnel to our company." says Daniel
Simoncini, Foraco's Chairman and Chief Executive Officer.
Jean-Pierre Charmensat, Foraco's co-CEO and Chief Financial Officer
adds, "This immediately accretive acquisition offers us exciting
opportunities in Brazil, and we
expect to quickly consolidate and synergize operations."
Walid Khaoule and Fernando Paiva, Servitec's Co-Managing
Directors, have expressed, "We are very happy to be joining the
Foraco team. Foraco's expertise in engineering custom drill rigs,
working in complex and deep geological environments, and their
comprehensive corporate social responsibility policies are
important and complementary skills we look forward to offering our
clients. Our future focus will be on enhancing our current
operations, and expanding the depth of our services in the
Brazilian market. We have built a strong and profitable business in
Brazil, and are looking forward to
growing it even further, in the years to come."
About Foraco International SA
Foraco International SA (TSX: FAR) is a leading global mineral
drilling services company that provides a comprehensive and
reliable service offering in mining and water projects. Supported
by its founding values of integrity, innovation and involvement,
Foraco has grown into the third largest global drilling enterprise
with a presence in 23 countries across five continents. For more
information about Foraco, visit www.foraco.com.
Caution concerning forward-looking
statements
This press release may contain
"forward-looking statements" and "forward-looking information"
within the meaning of applicable securities laws. These
statements and information include estimates, forecasts,
information and statements as to management's expectations with
respect to, among other things, the future financial or operating
performance of the Company and capital and operating
expenditures. Often, but not always, forward-looking
statements and information can be identified by the use of words
such as "may", "will", "should", "plans", "expects", "intends",
"anticipates", "believes", "budget", and "scheduled" or the
negative thereof or variations thereon or similar
terminology. Forward-looking statements and information are
necessarily based upon a number of estimates and assumptions that,
while considered reasonable by management, are inherently subject
to significant business, economic and competitive uncertainties and
contingencies. Readers are cautioned that any such
forward-looking statements and information are not guarantees and
there can be no assurance that such statements and information will
prove to be accurate and actual results and future events could
differ materially from those anticipated in such statements.
Important factors that could cause actual results to differ
materially from the Company's expectations are disclosed under the
heading "Risk Factors" in the Company's Annual Information Form
dated March 31, 2010, which is filed
with Canadian regulators on SEDAR
(www.sedar.com). The Company expressly
disclaims any intention or obligation to update or revise any
forward-looking statements and information whether as a result of
new information, future events or otherwise. All written and
oral forward-looking statements and information attributable to us
or persons acting on our behalf are expressly qualified in their
entirety by the foregoing cautionary statements.
SOURCE Foraco International S.A