Major Drilling Buys Bunbury Drilling Company
The Canadian drilling contractor is acquiring the Western Australian mine dewatering specialist for up to A$70 million.
Updated on Nov. 2, 2026 in Corporate Finance
Live Poll
Do you think big companies buying up local businesses usually helps the community?
Major Drilling has acquired all outstanding shares of Bunbury Drilling Company, a Western Australian specialized mine dewatering drilling contractor. The deal carries an upfront cash payment of A$50 million plus an earn-out of up to A$20 million, for total consideration of up to A$70 million, or approximately C$69 million.
Why it matters
The acquisition adds a specialized line of drilling services aimed at senior producers, extending Major Drilling's footprint into Australia. The company expects the deal to be immediately accretive to earnings per share.
The target generated roughly A$43 million in revenue and A$15 million in adjusted EBITDA over the twelve months ending June 30, 2026, against a total consideration of up to A$70 million. Whether the earn-out will be paid in full depends on the company reaching average annual EBITDA of about A$18 million over three years.
The players
Major Drilling
Major Drilling is a Canadian mineral drilling services company headquartered in Moncton, New Brunswick, that serves mining clients worldwide.
Bunbury Drilling Company
Bunbury Drilling Company is a Western Australian mine dewatering drilling contractor with more than 70 years of operating experience.
The details
Major Drilling is funding the upfront payment through existing cash on hand and debt facilities, with the cash paid on closing subject to working capital adjustments. The earn-out of up to A$20 million is payable in cash over three years based on EBITDA milestones. Bunbury Drilling Company operates eight specialized drills and drills exclusively for senior producers in Western Australia.
Timeline
June 30, 2026: End of the twelve-month period covered by the target's reported financials.
November 2, 2026: Major Drilling announced the acquisition.
Over the next three years: Earn-out payments are tied to EBITDA milestones.
Market Dynamics
The deal extends Major Drilling's strategic expansion beyond conventional drilling into higher-margin specialized services for senior mining producers. The company says specialized drilling offers stronger gross and EBITDA margins than conventional or underground drilling.
For investors, the deal's earn-out structure means part of the price depends on the target hitting EBITDA milestones over the next three years. The acquisition is expected to be immediately accretive to earnings per share, which may matter for shareholders tracking Major Drilling's results.
The takeaway
Deals structured with earn-outs tie part of the price to future performance, so the headline figure of A$70 million is a ceiling rather than a guaranteed payment. Readers tracking mining-services acquisitions should watch whether the target's EBITDA milestones are met.
Further reading
Explore more Corporate Finance coverage of deals like this one.
Source note: This article includes information reported by The Manila times.
Live Poll
Do you think big companies buying up local businesses usually helps the community?
