Orbit Garant buys Advantage Control Technologies

Orbit Garant Drilling (OGD-T) has acquired Advantage Control Technologies (ACT). As part of the transaction, Orbit Garant will buy specialized technologies and equipment, while also expanding its operations in northern Ontario.

ACT has developed technology designed to reduce the operating costs associated with mineral drilling. These technologies, which have been extensively tested by Orbit Garant, incorporate computerized monitoring and control which reduces both the labour and consumables components of drilling. The technologies are applicable both to new drills and to Orbit Garant’s existing fleet. Orbit Garant believes that it will begin to generate cost efficiencies from the acquisition during the current fiscal year.

“We are very excited about this acquisition,” said Eric Alexandre, president and CEO of Orbit Garant. “With the addition of these advanced technologies we are able to significantly increase productivity, improve health and safety and optimize labour efficiency that will flow through to our clients. Adopting these new sophisticated technologies will improve our efficiency while enhancing our low-cost, vertically integrated industry-leading customer service.”

The purchase price consists of $2.9 million in cash and the equivalent of $750,000 in Orbit Garant shares at $5.65 apiece. In addition, Orbit will pay up to $2.4 million over three years based on the profitability of contracts already in place and the operating results of the Sudbury office. Orbit Garant is also buying some equipment related to this business for $375,000 in cash.

Richard Ross and Bert Stahl, the owners of ACT, have entered into five-year employment contracts with Orbit Garant. They will manage a new Sudbury-based office for Orbit Garant.

“This acquisition is directly in line with our strategy and we are very pleased to have Richard and Bert join our team,” said Alexandre. “With new operations based in Sudbury, we will have greater access to a large customer base and prestige clients in one of Canada’s most prolific mining regions. A key competitive advantage for us has been our proximity to clients in Quebec. With this acquisition, we are duplicating this ‘radius’ business model into Ontario.”