Sandvik to acquire attachment tools manufacturer Osa Demolition Equipment

Rhea-AI Summary

Sandvik (SDVKY) has announced the acquisition of Osa Demolition Equipment S.r.l. (OSA), an Italian manufacturer of demolition tools and hydraulic hammers. The acquisition, expected to close in Q3 2025, will strengthen Sandvik's position in the demolition and recycling segment.

OSA, founded in 1994, operates a state-of-the-art manufacturing facility in Molfetta, Italy, employing 64 people. The company generated revenues of approximately SEK 150 million in 2024 and primarily serves European markets, with additional presence in Australia and the U.S.

The acquired company will be integrated into Sandvik's Attachment Tools division within Sandvik Rock Processing Solutions. While the purchase price remains undisclosed, the acquisition is expected to have impact on Sandvik's EBITA margin and earnings per share.

Positive

• Strategic expansion into demolition and recycling segment
• Access to OSA's state-of-the-art manufacturing facility and R&D capabilities
• Opportunity to leverage Sandvik's distributor network for growth
• Geographic expansion in Europe, Australia, and U.S. markets

Negative

• immediate financial impact on EBITA margin and EPS
• Relatively small revenue contribution (SEK 150M) compared to Sandvik's size

News Market Reaction – SDVKY

-8.28%

1 alert

-8.28% News Effect

On the day this news was published, SDVKY declined 8.28%, reflecting a notable negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

STOCKHOLM, April 4, 2025 /PRNewswire/ -- Sandvik has signed an agreement to acquire Osa Demolition Equipment S.r.l. (OSA), an Italy-based manufacturer of demolition tools and hydraulic hammers. OSA will be reported as a business unit within the Attachment Tools division in the business area Sandvik Rock Processing Solutions. 

OSA's range of attachment tools will enhance Sandvik's offering and position in the demolition and recycling segment. Furthermore, the acquisition will provide additional growth opportunities by leveraging Sandvik's large network of distributors. Today, OSA's main market is within Europe, and the company also has presence in Australia and the U.S.

"This acquisition is a step in our strategy to expand in attractive niches within Sandvik Rock Processing Solutions. We look forward to welcome OSA to the Group," says Stefan Widing, President and CEO of Sandvik.

OSA was founded in 1994 and has 64 employees. The company is headquartered Molfetta, Italy, with a state-of-the-art manufacturing facility and R&D capabilities. In 2024, the company had revenues of approximately SEK 150 million. The impact on Sandvik's EBITA margin and earnings per share will be limited. The parties have agreed not to disclose the purchase price. The transaction is expected to close during the third quarter of 2025, subject to customary regulatory approvals. 

Stockholm, April 4, 2025
Sandvik AB

For further information, contact Louise Tjeder, VP Investor relations, phone: +46 (0) 70782 6374 or Johannes Hellström, Press and Media Relations Manager, phone: +46 (0) 70721 1008

This information was brought to you by Cision http://news.cision.com.

https://news.cision.com/sandvik/r/sandvik-to-acquire-attachment-tools-manufacturer-osa-demolition-equipment,c4131125

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Sandvik to acquire attachment tools manufacturer Osa Demolition Equipment

 

FAQ

What is the expected revenue contribution of OSA Demolition Equipment to Sandvik (SDVKY)?

OSA Demolition Equipment generated revenues of approximately SEK 150 million in 2024.

When will Sandvik's acquisition of OSA Demolition Equipment be completed?

The acquisition is expected to close during the third quarter of 2025, subject to regulatory approvals.

How many employees will join Sandvik through the OSA Demolition Equipment acquisition?

OSA has 64 employees who will join Sandvik following the acquisition.

Which markets does OSA Demolition Equipment currently serve?

OSA primarily operates in Europe, with additional presence in Australia and the United States.

How will the OSA acquisition impact Sandvik's (SDVKY) financial performance?

The impact on Sandvik's EBITA margin and earnings per share will be , according to the company.