Sandvik completes the acquisition of screens and feeders manufacturer Kwatani

Rhea-AI Summary

Sandvik has successfully completed its acquisition of Kwatani, a South African company specializing in screens and feeders for the mining industry. In 2020, Kwatani reported revenues of approximately 175 million SEK with an EBIT margin that is slightly dilutive to Sandvik's Rock Processing Solutions. Initially, the acquisition is expected to have a neutral impact on Sandvik's earnings per share. Kwatani will be integrated into Sandvik's Stationary Crushing and Screening division.

Positive

• Acquisition of a leading supplier enhances product offering in mining.
• Kwatani generated revenues of 175 million SEK in 2020, indicating a strong market presence.
• Integration into Sandvik's Stationary Crushing and Screening division could lead to synergies.

Negative

• EBIT margin from Kwatani is slightly dilutive to Sandvik's existing operations.
• Initial impact on earnings per share is expected to be neutral, indicating no immediate financial uplift.

SANDVIKEN, Sweden, Dec. 9, 2021 /PRNewswire/ -- Sandvik has completed the previously announced acquisition of the South African based company Kwatani, a leading supplier of screens and feeders for the mining industry. The product offering includes screens, feeders, fine separators, drives and services.

In 2020 Kwatani had revenues of about 175 million SEK and an EBIT margin slightly dilutive to Sandvik Rock Processing Solutions. Impact on Sandvik's earnings per share will initially be neutral.

The company will be reported in Stationary Crushing and Screening, a division in Sandvik Rock Processing Solutions.

Stockholm, December 9, 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 79 098 2670

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Sandvik completes the acquisition of screens and feeders manufacturer Kwatani

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SOURCE Sandvik

FAQ

What is the significance of Sandvik's acquisition of Kwatani?

The acquisition allows Sandvik to enhance its product offerings in the mining industry, potentially leading to increased market share.

What were Kwatani's revenues prior to its acquisition by Sandvik?

Kwatani had revenues of approximately 175 million SEK in 2020.

How will the acquisition affect Sandvik's earnings per share?

Initially, the acquisition is expected to have a neutral impact on Sandvik's earnings per share.

In which division will Kwatani be integrated after the acquisition?

Kwatani will be integrated into Sandvik's Stationary Crushing and Screening division.