Epiroc completes acquisition of drilling tools manufacturer Fordia

4 January 2019 (Last Updated January 7th, 2019 07:59)

Epiroc, a Sweden-based productivity partner for the mining, infrastructure and natural resources industries, has closed the purchase of Fordia, a Canadian manufacturer of exploration drilling tools, for an undisclosed price.

Epiroc completes acquisition of drilling tools manufacturer Fordia
Fordia’s Hero 7 diamond drill bit . Credit: Epiroc AB

Epiroc, a Sweden-based productivity partner for the mining, infrastructure and natural resources industries, has closed the purchase of Fordia, a Canadian manufacturer of exploration drilling tools, for an undisclosed price.

Epiroc first agreed to purchase Fordia in October 2018, and stated that the purchase price is not material relative to its market capitalisation.

The acquired entity will become part of Epiroc’s Rock Drilling Tools division, and continue to be based in Montreal, Canada.

Fordia has sales in over 70 countries and provides exploration drilling tools such as diamond bits, down-the-hole tools, drill rods and drill casings, as well as water treatment systems and pumps.

These tools are used by mining firms and drilling contractors.

Fordia has around 250 employees and had revenues of C$85m ($62.65m) for the 12 months to September 2018.

In November 2018, Epiroc launched its second generation of battery-operated machines to help reduce costs for its mining customers.

The battery-driven underground loaders, trucks and drill rigs aim to provide benefits for mining companies including improvements to safety performance, reduced greenhouse gas emissions and lower operating costs.

“The acquired entity will become part of Epiroc’s Rock Drilling Tools division, and continue to be based in Montreal, Canada.”

The battery-run products launched include 14 and 18-tonne loaders, a 42-tonne truck and a mid-sized drilling equipment including face drilling, production drilling and rock reinforcement rigs.

During the same month, Epiroc agreed to acquire Innovative Mining Products, also known as New Concept Mining, a South African manufacturer of rock reinforcement products for underground mining.

Besides South Africa, Innovative Mining Products has facilities in Peru, Zambia and Canada. With about 900 employees, its revenue in the 12 months through 30 September 2018 was about ZAR950m ($65.7m).