Sandvik completes the acquisition of DSI Underground

Rhea-AI Summary

Sandvik has successfully acquired DSI Underground, a leader in ground support products for underground mining and tunneling. The acquisition, valued at approximately EUR 943 million, is expected to slightly positively impact Sandvik's earnings per share. DSI Underground generated around EUR 516 million in revenues in 2020. The acquisition will lead to DSI Underground forming its own division within Sandvik Mining and Rock Solutions, bolstering Sandvik's market position in the sector.

Positive

• Acquisition of DSI Underground strengthens Sandvik's position in underground mining and tunneling.
• Expected slight positive impact on earnings per share.
• DSI Underground had revenues of EUR 516 million in 2020.

Negative

• Pro-forma EBIT margin is projected to be ~200 basis points dilutive to Sandvik Mining and Rock Solutions' margin.

SANDVIKEN, Sweden, July 7, 2021 /PRNewswire/ -- Sandvik has completed the previously announced acquisition of DSI Underground, the global leader in ground support and reinforcement products, systems and solutions for the underground mining and tunneling industries. 

In 2020, DSI Underground had revenues of about EUR 516 million (excluding the four joint ventures that are part of the acquisition) and a pro-forma EBIT margin ~200 basis points dilutive to Sandvik Mining and Rock Solutions' margin, including purchase price allocation. The purchase price is approximately EUR 943 million on a cash and debt free basis. Impact on Sandvik's earnings per share will be slightly positive. DSI Underground has around 2,000 employees.

DSI Underground will form its own division within the business area Sandvik Mining and Rock Solutions.

Stockholm, July 7, 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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Sandvik completes the acquisition of DSI Underground

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SOURCE Sandvik

FAQ

What is the impact of the Sandvik acquisition of DSI Underground on stock symbol SDVKY?

The acquisition is expected to have a slightly positive impact on Sandvik's earnings per share, benefiting stock symbol SDVKY.

What were the revenues for DSI Underground in 2020?

DSI Underground reported revenues of approximately EUR 516 million in 2020.

What is the purchase price for the DSI Underground acquisition by Sandvik?

The purchase price for the acquisition of DSI Underground is approximately EUR 943 million.

How will the acquisition of DSI Underground affect Sandvik Mining and Rock Solutions' margins?

The pro-forma EBIT margin from the acquisition is expected to be about 200 basis points dilutive to Sandvik Mining and Rock Solutions' margin.

How many employees does DSI Underground have?

DSI Underground employs around 2,000 individuals.