Sandvik reinforces mining, rock solutions
Agrees to invest US$1.15 billion to acquire DSI Underground Metal Tech News – December 30, 2020
Last updated 12/29/2020 at 5:10pm
Further shoring up its position as a world leader in mining equipment and services, Sandvik has agreed to acquire DSI Underground, the global leader in ground support and reinforcement products for the underground mining and tunneling industries, for 943 million euros (US$1.15 billion).
While the price tag is large, at roughly 518 million euros (US$632 million), so is DSI Underground's estimated revenues for 2020. While not a household name outside the mining and tunneling sectors, this Australia-headquartered mining and tunneling safety solutions company has approximately 2,000 employees in 70 countries around the globe. This includes 22 regional manufacturing facilities that offer bolting systems, injection chemicals, resin capsules, and other products needed for underground mining and tunneling.
"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 Sandvik President and CEO Stefan Widing.
Once the sale is finalized, slated for mid-2021, DSI Underground will become part of Sandvik Mining and Rock Solutions.
"With the world's most extensive choice of ground support products and systems, the DSI Underground's offering is highly complementary and enables us to deliver greater value and safety to our customers," said Sandvik Mining and Rock Solutions President Henrik Ager. "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."
For DSI, the inclusion into Sandvik Mining and Rock Solutions offers "good growth opportunities and strong product and geographic synergies."
"With our knowledge of ground support technologies, we can add a valuable and complementary offering to Sandvik Mining and Rock Solutions," said DSI Underground CEO Michael Reich. "On the other hand, we will benefit from the knowledge of the new group and Sandvik's global customer network. Our customers will continue to receive the products and services at the same high quality with the associated service. At the same time, we will be able to expand our global reach and combine our offering with Sandvik products and services – for the benefit of our customers."