Sandvik Mining and Rock Technology has signed an agreement to acquire Allied Construction Products, a US distributor of hydraulic hammers to the construction and mining industries and manufacturer of compactor plates and mounting brackets.
Sandvik, which already owned 21% of the company, has had a strategic partnership in place with Allied since 2003 whereby Allied distributed Rammer products to the US market. According to Sandvik, its products generate about 80% of Allied’s revenues.
The acquisition of Allied establishes an enhanced sales, service and support platform for the growing North American customer base, Sandvik said.
“It also enables Sandvik to expand the existing dealer network into new regions and to penetrate new customer segments with a broader product offering,” the company added. “Allied will obtain additional strength and access to cutting-edge technology.”
In 2019, Allied generated revenues of around $29 million with 38 employees, Sandvik said.
The parties have agreed not to disclose the purchase price and the transaction is expected to close during the September quarter.