Boart Longyear Group Ltd. announced a definitive agreement on December 27, 2023, to be acquired by an affiliate of American Industrial Partners Capital Fund VIII, L.P. (AcquireCo) in a take-private transaction. The arrangement, valued at approximately $500.7 million (US$371 million), will see all outstanding shares of Boart Longyear acquired for $2.64 (US$1.9554) each in cash, a significant premium over recent trading prices.

The Board of Directors unanimously recommended the deal, emphasizing the attractive premium offered to shareholders. Shareholders, excluding Ascribe and Centerbridge who will receive $1.67 (US$1.2351) per share, supported the transaction, with major shareholders holding over 98% of shares agreeing to irrevocable voting and support agreements.

The transaction is structured through a court-approved plan of arrangement and includes customary closing conditions, such as regulatory and court approvals. It is anticipated to close in the first quarter of 2024.

Legal advisors include Osler and Ashurst Australia for Boart Longyear, and Stikeman Elliott LLP, Ropes & Gray, and Gilbert + Tobin for American Industrial Partners. Financial advisory was provided by Goldman Sachs for Boart Longyear and Jefferies for American Industrial Partners.

This acquisition is set to capitalize on Boart Longyear's leading position in drilling services and innovative drilling technology, aiming for sustained growth and enhanced market capabilities under private ownership.