Foraco International to control Russian driller

With the ink still drying on Foraco International’s (FAR-T) acquisition of Latin American driller Adviser Drilling, the Marseille, Francebased company has shifted its focus to Russia by snapping up a controlling interest in Moscow-based Eastern Drilling Co. (EDC).

“It is gratifying to see Foraco close two important acquisitions in a matter of weeks that strengthen our global footprint — first in Latin America with the Adviser acquisition, and now, in Russia with EDC. We are expecting EDC to generate about US$10 million revenue in 2010 from its existing customer contracts,” said Jean-Pierre Charmensat, co-CEO and CFO of Foraco, in a press release.

As part of the deal, the existing executive staff and founders of EDC will hold on to half of the company in a non-controlling capacity. They will continue to manage and develop the company using expanded resources from Foraco such as new drilling technologies, management, technical, financial and operational support.

EDC already has six diamond drill rigs and ancillary equipment and has been operating in Russia since 2007.

Although its headquarters is in Moscow, EDC has operational facilities in Russia’s Far East and Eastern Siberia, where the company does the majority of its mine development.

In a prepared statement, Foraco chairman and chief executive Daniel Simoncini said he hopes the acquisition will help strengthen the company’s relationship with its new customers.

“This deal is significantly increasing our growth potential in the region. We also foresee global opportunities through providing continued services to our Russianbased customers when they operate in other jurisdictions,” said Simoncini.