ASX-listed Mitchell Services has entered into an agreement to acquire 100% of the shares in Radco Technologies and Radco Group(collectively Radco Drilling), for A$5.3-million in cash.
Privately-owned Radco Drilling, based in Queensland and New South Wales, is a specialist in underground coal drilling and gas drainage services. With a fleet of 11 underground drill rigs, the company operates in the underground coal drilling industry and currently services Tier 1 global coal mining clients under long-term contracts.
Mitchell Services said that the acquisition would diversify its revenue though the niche market of underground coal drilling and gas drainage. The company explained that the highly regulated nature of this type of drilling created a barrier to entry for new competitors, which could be further leveraged given the combined entity's ability to offer packaged services (both surface and underground coal drilling).
Read the full announcement at http://www.miningweekly.com/article/mitchell-services-buys-underground-coal-drilling-firm-radco-2018-02-12/rep_id:3650