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Major Drilling Group International Inc. announced that its wholly owned Australian subsidiary, Major Drilling Pty Ltd, has completed the formal acquisition of Bunbury Drilling Company, known as BDC, for a total consideration of up to 70 million Australian dollars. BDC is an established, specialized drilling contractor headquartered in Bunbury, Western Australia, focusing exclusively on deep mine dewatering and water supply drilling services. Under the structured transaction terms, Major Drilling completed an initial upfront cash consideration of 50 million Australian dollars, with up to 20 million Australian dollars in milestone-based earn-out consideration payable over three years.
Bunbury Drilling Company represents a premier specialized drilling service provider with more than 70 years of operating history across Australian mining hubs. Over the trailing 12-month period ended 30 June 2026, BDC generated approximately 43 million Australian dollars in revenue and delivered 15 million Australian dollars in adjusted EBITDA. The company operates a specialized fleet of eight proprietary, purpose-built heavy drilling rigs capable of drilling large-diameter, deep dewatering wells under complex hydrogeological and artesian conditions in Western Australia.
Mine dewatering has emerged as an essential, nondiscretionary operational requirement for tier-one open-pit and underground iron ore, gold and lithium producers operating below regional groundwater tables in the Pilbara and Goldfields regions. BDC maintains long-term service contracts exclusively with senior mining corporations, generating defensive, high-margin revenue profiles with high operational utilization rates. The acquisition significantly diversifies Major Drilling's revenue stream by expanding recurring operational service revenues that are insulated from cyclical mineral exploration budget adjustments.
The acquisition will be immediately accretive to Major Drilling's consolidated earnings and free cash flow generation. Major Drilling confirmed that BDC's senior management team and operational field crews will remain in place to lead the Australian water solutions division. By pairing BDC's proprietary drilling engineering with Major Drilling's international balance sheet, procurement power and geographic footprint, the combined entity aims to scale specialized dewatering and water management drilling services into Latin American and North American hard-rock mining markets.