Sandvik to buy underground safety solutions provider4 January 2021
Sandvik has announced it is to acquire DSI Underground, a global leader in ground support and reinforcement products, systems and solutions for the tunnelling and mining sectors. The purchase price is around €943m (US$1.15bn).
The DSI Underground product range includes bolting systems, injection chemicals and resin capsules. With around 2,000 employees and a presence in 70 countries, DSI has 22 production units situated close to end customers. Its revenue for 2020 is expected to be around €518m (US$632m), but this excludes four joint ventures that are part of the acquisition and its EBIT margin.
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.”
The acquisition – expected to close by mid-2021 and subject to relevant regulatory approvals – is thought will impact positively on Sandvik’s earnings per share.