Advent International has made its first investment from GPE V, the €2.5bn global buyout fund that closed in April. The firm’s London and New York offices led the buyout of Boart Longyear in a transaction that values the drilling services and equipment company at US$455m. Anglo American was the vendor.
One of only two global drilling services companies operating in a fragmented US$70bn global industry, Boart represents a consolidation play in a market experiencing a significant upturn in mining exploration expenditure.
Particular areas of opportunity include emerging markets, where there is growing demand for mined minerals, and accelerating mineral exploration drilling markets such as Brazil, Russia and China, Advent said. Opportunities also lie in emerging niche areas such as energy, water, and environmental drilling.
The company was established in 1936 in order to turn Anglo American’s stockpile of boart – lowgrade natural diamonds – into saleable drilling products. It now employs 6,700 people from sites in 38 countries.
Humphrey Battcock, the London-based partner who co-led the transaction, said the company would pursue a three-track growth strategy. This comprises strategic acquisitions, increasing market penetration in under-represented territories, and diversification into non-mining drilling services where appropriate.
Since it was founded in 1984, Advent has invested in more than 500 companies and has helped businesses raise US$10bn through public equity and debt offerings.