Global private equity firm Advent International has agreed to acquire drilling equipment and services company Boart Longyear from Anglo American plc for $545 million (€444 million).
The investment, co-led by the firm’s Boston and London offices, will be the first made from Advent’s latest $3.3 billion global buyout fund GPE V, which closed in April.
Boart Longyear was founded in 1936 in order to turn Anglo American’s stockpile of “boart”, or low-grade natural diamonds, into drilling products. The company is a global provider of drilling services, tools and equipment for the mining, construction, water and environmental industries, and operates from sites in 38 countries worldwide.
According to a statement, Boart Longyear is one of only two global drilling services companies operating in a fragmented $70 billion global industry. Advent’s purchase is meant to capitalise on that market, which is experiencing a significant upturn in mining exploration expenditure, particularly in emerging markets.
Advent’s last major investment took place in February, when it teamed with Turkven Private Equity to arrange equity backing for the expansion of Turkish car fleet rental company Intercity. The International Finance Corporation (IFC), the German bilateral development agency DEG and the Dutch bilateral development agency FMO acted as co-investors and also provided a $60 million long-term debt facility to finance the expansion of the company’s fleet.
Founded in 1984, Advent International has offices in 13 countries across North America, Europe and Asia. It currently manages $10 billion in capital.