Rock drilling tools specialist, Mincon, has agreed to acquire Lehti Group to further enhance its manufacturing capability in the geotechnical/construction markets.

The acquisition of Finland-based Lehti follows on from the addition of PPV Oy, in 2017, a company that became a key part of the engineering hub in Mincon Nordic, focusing on accessing the geotechnical/construction markets, Mincon said. Following the acquisition, the Lehti business will be fully combined into the Mincon Nordic operations.

Lehti Group was part of Tampereen Konepajat Oy delivering machined components and 3D-measured parts for customers. As a result of the acquisition, Mincon Nordic will become the world’s leading supplier of tools for demanding drilling applications, according to Tampereen.

Mincon said: “The significant growth Mincon Nordic has experienced in the geotechnical market has resulted in Lehti becoming a key manufacturing partner to Mincon, with Mincon accounting for approximately €9 million ($9.8 million) of the projected €13 million turnover achieved by Lehti during 2019.”

The projected EBITDA of Lehti for 2019 is around €2.2 million. The partnership with Lehti has enabled Mincon to win and supply significant infrastructure projects in North America, Scandinavia, Asia and Russia, it said.

The cash consideration is €8 million, with €7 million to be paid on completion and a further €500,000 payable in April 2020 and the final payment of €500,000 in April 2021.

Joe Purcell, CEO of Mincon, said: “This acquisition means that Mincon Nordic enters 2020 with the momentum provided by the contracts which we successfully won in 2019 and with superb reference sites for Mincon geotechnical products manufactured by Lehti.

“We believe this acquisition will leave Mincon well placed to further expand in the attractive geotechnical market worldwide.”