Boart Longyear has been a provider of drilling services and products to the global Minerals Industry for over 100 years.
The Longyear Company was founded in 1890 and Boart International, a De Beers subsidiary engaged in the development of industrial applications for industrial diamonds (including coring drill bits), in 1936.
The Longyear Company was acquired by Boart International in 1974 and formally merged into Boart Longyear in 1994. From 1974 to 2005, Boart Longyear operated as a wholly owned subsidiary of Anglo American, providing services and products to most major mining companies. During this time, the Company acquired and successfully integrated a number of companies that further expanded Boart Longyear’s capabilities.
Under Anglo American’s ownership, Boart Longyear represented less than 4% of total revenue, was considered a non-core business and was managed regionally, with its head offi ce in Johannesburg, South Africa. There was limited emphasis on performance or growth and the Company had limited access to capital.
In 2005, Boart Longyear was acquired by Advent International, Bain Capital and the Management Investors. In 2006, the Consortium was introduced as an investor alongside Advent International, Bain Capital and the Management Investors.
Since the sale by Anglo American, Management has undertaken a number of restructuring initiatives to establish Boart Longyear as a globally run business, focused on operational improvements and organic and acquisition growth. These measures include the following:
- establishment of one global, integrated
business with a uniform approach to pricing,
equipment assignment and client account
management;
- relocation of operational head office
to Salt Lake City, Utah, United States,
from Johannesburg, South Africa, which
significantly expanded the available
candidate pool for senior management
positions; and
- significant investment in expanding and
improving the business. For example:
- the Company has completed six
acquisitions over the six months to
31 January 2007;
- restructuring and rationalising the
Company’s manufacturing base;
- there are currently a number of cost
saving initiatives being undertaken, such
as global sourcing of inputs; and
- during FY2006, the Company undertook
significant capital expenditure to
add over 60 rigs to its base fleet and
to debottleneck and rationalise its
manufacturing footprint.
The Company believes there are still further benefits to be derived from operating as an independent, global drilling business. This is expected to drive growth in the medium term.
