Dynamic adds water drilling arm

Welldrill acquisition diversifies earnings base

Australian drilling contractor Dynamic Group will pay A$19 million (US$13m) for water-well drilling specialist Welldrill and fork out a further A$4m for a new rig and ancillary equipment due for delivery in October this year.

Welldrill has BHP, OZ Minerals and the government of Western Australia on its client list.

The acquisition is forecast to generate A$26-28m of revenue and $7-8m of EBITDA in FY23.

Dynamic is paying $15m upfront in cash and shares, and $4m at the end of March next year subject to performance markers being met.

The company, which had $8.9m in the bank at the end of March this year, said the acquisition funding would come from existing liquidity, and debt.

Dynamic is buying Welldrill from its founder, Peter Chegwidden, who established the company in 2000. It said the acquisition added a “third limb” to its business, increasing mining production and non-mining market exposure.

“We are particularly excited to have [Welldrill general manager of four years] Tim Westcott, a well-regarded and industry leading drilling executive, joining the Dynamic executive management team,” said Dynamic managing director, Mark Davis.


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