Major Drilling (MDI.TO) said on Thursday it will acquire privately held Bradley Group for C$80 million ($80.1 million), a move that allows it to expand its drilling services business in northern Quebec and northern Ontario. Moncton, New Brunswick-based Major Drilling, one of the world's largest providers of drilling services to mining companies, has seen demand for its services surge this year as precious-metal and base-metal prices have risen sharply. The company said the acquisition gives it the opportunity to expand its presence in high growth areas, while increasing its rig count by more than 20 percent to nearly 700 rigs. Perhaps more significantly, the deal also increases the size of Major Drilling's workforce by nearly 20 percent to more than 5,200 employees. Major Drilling and its peers have often argued that the biggest constraint they face given the surge in demand for drilling services is a shortage of trained and experienced drill operators. With about 70 percent of Bradley's revenue generated by gold properties, the deal will also boost Major Drilling's presence in the gold-mining industry at a time when the price of gold is at record highs.
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