Major Drilling Buys Australian Dewatering Specialist
Drilling contractors in Western Australia should expect a larger diversified rival in specialized mine dewatering work.
Updated on Nov. 2, 2026 in Corporate Finance
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Canadian drilling contractor Major Drilling has agreed to acquire Bunbury Drilling Company, a Western Australian mine dewatering drilling firm, for an upfront A$50 million plus an earn-out of up to A$20 million. The deal extends Major Drilling's footprint into specialized drilling for senior mining producers in Australia.
Why it matters
The acquisition gives Major Drilling a new line of specialized dewatering drilling services aimed at senior producers, a segment where operators typically see stronger margins than in conventional or underground work. For drilling contractors and mine service providers, it signals consolidation and rising demand for specialized capability in Western Australia.
The deal carries an upfront cash price of A$50 million with up to A$20 million more in earn-out payments, and the target generated about A$43 million in revenue and roughly A$15 million in adjusted EBITDA over the twelve months ending June 30, 2026. The earn-out requires average annual EBITDA of about A$18 million over three years, and the target operates eight specialized drills.
The players
Major Drilling
Canadian drilling contractor serving mining clients worldwide, expanding here into specialized dewatering drilling in Australia.
Bunbury Drilling Company
Western Australian mine dewatering drilling contractor with over 70 years of operating history, serving senior producers.
The details
Major Drilling will pay A$50 million in cash at closing, subject to working capital adjustments, with the remainder payable in cash over three years if Bunbury Drilling Company hits EBITDA milestones. The upfront price is funded from existing cash on hand and debt facilities. Bunbury Drilling Company, which has more than 70 years of operating experience, drills exclusively for senior producers in Western Australia, giving the acquirer a ready-made client base in that market.
Timeline
June 30, 2026: End of the twelve-month period for which the target's financials are reported.
November 2, 2026: Major Drilling announced the acquisition.
Over the next three years: Earn-out payments tied to EBITDA milestones are made.
Market Landscape
Major Drilling's move follows its stated strategy of adding specialized services for senior mining companies rather than competing only in conventional drilling. Specialized dewatering work is described as offering stronger gross and EBITDA margins than conventional or underground drilling, which places this deal within a broader push by drilling contractors to capture higher-margin niches.
Mining service operators and drilling contractors should watch for increased competition from larger, diversified firms moving into specialized niches like dewatering. Procurement teams at mining producers may see expanded options for specialized drilling capacity in Western Australia.
The takeaway
Operators in specialized mine services should track whether acquirers like Major Drilling deliver the margin gains they project in Western Australia. Contractors weighing their own growth options should note that deal structures tying part of the price to EBITDA milestones shift risk onto the seller.
Further reading
For more on how deals like this are structured and reported, explore our Corporate Finance coverage.
Source note: This article includes information reported by The Manila times.
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