Sandvik acquires DSI Underground Joint Ventures, Rocbolt Technologies
SANDVIKEN, Sweden, Aug. 3, 2021 /PRNewswire/ -- Sandvik's acquisition of DSI Underground, the global leader in ground support and reinforcement products, systems and solutions for the underground mining and tunneling industries, was closed on July 7, 2021. The acquisition included DSI's ownership stake in four joint ventures ("Rocbolt Technologies") based in China, South Africa, Mongolia and Australia.
On August 3, 2021, Sandvik signed and completed three agreements to acquire the Joint Venture partner's (Jennmar) share of the Rocbolt Technologies JVs in China, South Africa and Mongolia. Jennmar will continue to be a JV partner in Australia.
Rocbolt Technologies will be reported in the Ground Support Division of business area Sandvik Mining and Rock Solutions.
In 2020, DSI Underground had revenues of about EUR 516 million (excluding the four joint ventures). The three JVs that will now be fully consolidated had revenues of around EUR 80 million in 2020.
The DSI acquisition, including purchase price allocation, accounting treatments related to the acquisition, and full consolidation of the three JVs, will in total be dilutive to the EBIT margin for Sandvik Mining and Rock Solutions by up to 300 basis points during the second half of 2021. In 2022 the EBIT margin for Sandvik Mining and Rock Solutions will be diluted around 170 basis points.
Both parties have agreed not to disclose the purchase price.
Stockholm, August 3, 2021
Sandvik AB
For further information, contact Louise Tjeder, Vice President Investor Relations, phone: +46 70 782 6374 or Johannes Hellström, Press and Media Relations Manager, phone: +46 70 721 1008.
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SOURCE Sandvik
