Sandvik, the world’s biggest maker of metal-cutting tools, has signed an agreement to acquire DSI Underground, the global leader in ground support and reinforcement products for underground mining and tunneling.
The company will be reported in Sandvik Mining and Rock Solutions.
“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”, said Stefan Widing, president and CEO of Sandvik.
The transaction is expected to close by mid-2021
DSI Underground is present in 70 countries. The product offering includes bolting systems, injection chemicals and resin capsules.
“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 tunneling”, said Henrik Ager, president of Sandvik Mining and Rock Solutions.
DSI Underground’s revenue for 2020 is expected to be about €518 million ($631m). The purchase price is approximately €943 million ($1148m) on a cash and debt free basis.
The transaction is expected to close by mid-2021 and is subject to relevant regulatory approvals.
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