Sandvik has signed an agreement to acquire DSI Underground, a global leader in ground support and reinforcement products, systems and solutions for the underground mining and tunneling industries, from owner Triton.
The OEM has agreed a purchase price of approximately €943 million ($1.15 million) on a cash and debt free basis, it said, adding that the company will be reported in the Sandvik Mining and Rock Solutions division.
Stefan Widing, President and CEO of Sandvik, said: “This acquisition is an important step in our growth ambition. DSI Underground’s track record of driving progress and safety in underground operations and its global reach will further strengthen our world-leading market position within mining and rock solutions.”
DSI Underground is present in 70 countries, with 22 production units situated close to end customers, according to Sandvik. The product offering includes bolting systems, injection chemicals and resin capsules.
Henrik Ager, President of Sandvik Mining and Rock Solutions, added: “With the world’s most extensive choice of ground support products and systems, DSI Underground’s offering is highly complementary and enables us to deliver greater value and safety to our customers. The deal gives DSI Underground access to Sandvik’s substantial R&D, global service and sales network, complements our growing aftermarket business and strengthens our leadership in underground mining and tunnelling.”
Michael Reich, CEO DSI Underground, said: “With our knowledge of ground support technologies, we can add a valuable and complementary offering to Sandvik Mining and Rock Solutions. On the other hand, we will benefit from the knowledge of the new group and Sandvik’s global customer network.”
DSI Underground has around 2,000 employees, with revenue for 2020 expected to be about €518 million ($631 million, excluding the four joint ventures that are part of the acquisition). The purchase price is approximately €943 million on a cash and debt free basis.
The transaction is expected to close by mid-2021 and is subject to relevant regulatory approvals.