Epiroc, the global productivity partner for the mining and infrastructure industries, has entered into an agreement to divest its geotechnical consumables product line. Epiroc agreed to sell the business to Mimir Invest AB, a global investment firm based in Stockholm, Sweden. The products are manufactured and assembled in Finland, Scotland and the United States, and consist mainly of large down-the-hole hammers and related drill bits and casing advancement systems. It is part of Epiroc’s Rock Drilling Tools division.
About 40 Epiroc employees work with this product line and will follow the business. The business generated about SEK 275 million in revenue in 2018. “We have found a better home for this business, which we have defined as a non-strategic core area for us,” said Helena Hedblom, Epiroc’s Senior Executive Vice President Mining and Infrastructure. “We believe it will have a good future with the new owner.” The transaction is expected to be completed later this year. The sales price is not material to Epiroc’s market capitalisation and is not disclosed.
”We are happy partnering with the employees and customers of the business. Combining Mimir’s industrial and investing expertise with the high quality staff, expertise and know-how of the geotechnical consumables business. This combination provides a great foundation for forming a new growing business” said Erik Bork, Managing Partner, Mimir.
“This is our third platform investment over six months, solidifying Mimir’s position as one of the leading investors focusing on acquiring non-core operations of larger corporations in complex transactions. The basis for this investment is the unique management experience and fundamental operating expertise that Mimir brings to its businesses”, says Joakim Notö, Managing Partner, Mimir. “For the first time we will inject the Mimir IOT4 Team to implement actions rapidly digitising operations, adding additional value and creating shorter time to customer,” he continues.