Sandvik completes the acquisition of Allied Construction

Rhea-AI Summary

On October 2, 2020, Sandvik announced the completion of its acquisition of Allied Construction Products LLC, a US distributor of hydraulic hammers and manufacturer of compactor plates. Previously, Sandvik held a 21% minority stake in Allied, which generated approximately 29 million USD in revenue in 2019 with a workforce of 38 employees. The acquisition is projected to be neutral to Sandvik's earnings per share from the start, enhancing its product offerings significantly, as Sandvik's products accounted for about 80% of Allied's revenues.

Positive

• Acquisition enhances Sandvik's product offerings in hydraulic hammers and compactor plates.
• Previously held a 21% minority stake, indicating established relationship and synergy.
• Allied's revenue of approximately 29 million USD provides a solid addition to Sandvik's portfolio.

Negative

• None.

SANDVIKEN, Sweden, Oct. 2, 2020 /PRNewswire/ -- Sandvik has completed the previously announced acquisition of Allied Construction Products LLC (Allied), a US distributor of hydraulic hammers to the construction and mining industries and manufacturer of compactor plates and mounting brackets. 

In 2019 the company generated revenues of approximately 29 million USD with 38 employees. Sandvik was already a 21% minority shareholder of the company and Sandvik's products generated about 80% of Allied's revenues.

The deal is neutral to Sandvik's earnings per share from the start.

Stockholm, 2 October 2020
 

Sandvik AB 

For further information, contact Emelie Alm, Investor Relations Officer, phone: +46 79 060 8717 or Martin Blomgren, Press and Media Relations Manager, phone: +46 70 577 0549.

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Sandvik completes the acquisition of Allied Construction

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SOURCE Sandvik

FAQ

What is the significance of Sandvik acquiring Allied Construction Products?

The acquisition strengthens Sandvik's position in the construction and mining industries by expanding its product offerings.

How much revenue did Allied Construction generate before being acquired by Sandvik?

In 2019, Allied Construction generated approximately 29 million USD in revenue.

Will the acquisition of Allied Construction Products affect Sandvik's earnings per share?

The acquisition is expected to be neutral to Sandvik's earnings per share from the start.

What percentage of Allied's revenues come from Sandvik products?

Sandvik's products accounted for about 80% of Allied's revenues.