Malaga-based drilling equipment manufacturer Drillstar Engineering has been acquired by Swedish company Driconeq AB after more than 20 months of talks.
Founded in 1991, Drillstar produces reverse circulation drilling equipment and mainly supplies the mining sector.
Managing director Henk Corporaal said he began talks with Driconeq in January 2011.
“Our company was coming to a state where it had to be brought up to the next level and that required a substantial investment,” Mr Corporaal said.
The deal will see Drillstar add more products to its product line, and allow it to expand through Driconeq’s global coverage of the drilling products market.
“We are very pleased with this opportunity to include Drillstar’s superior product range and close relationship with customers in the Drillstar group,” Driconeq CEO Mats Blacker said in a statement.
“We are certain that combining forces enables us to service our customers even closer, in Australia and both companies’ valuable international partners.”
The sale only included the drill equipment side of Drillstar, and Mr Corporaal will continue to run the drill-rig business.
The price of deal remains confidential, although Mr Corporaal told WA Business News he was “very happy” with price.
West Perth advisory firm Mergers & Acquisitions acted for Drillstar.