Sandvik expands in Latin America through the acquisition of MCB Services and Minerals

Rhea-AI Summary

Sandvik has acquired MCB Services and Minerals, a Brazilian seller of mining software and services, for an undisclosed amount. MCB generated revenues of SEK 60 million in 2022 and will be integrated into Sandvik's Digital Mining Technologies division. This acquisition is expected to be accretive to Sandvik's earnings per share. MCB has established strong relationships with key open-pit mines across Latin America, aligning with Sandvik's strategic objective to expand in the surface mining segment. The deal enhances MCB's existing partnership with Deswik, strengthening their market position in Brazil and beyond.

Positive

• Acquisition of MCB is expected to be accretive to earnings per share.
• Strengthens Sandvik's market position in Latin America, especially in surface mining.
• MCB brings strong relationships with significant open pit mines in the region.

Negative

• None.

STOCKHOLM, April 3, 2023 /PRNewswire/ -- Sandvik has signed and completed the acquisition of MCB Services and Minerals ("MCB"), a seller of mining software and services and exclusive reseller partner to Deswik in Brazil. MCB, which had revenues of SEK 60 million in 2022, will be reported in Digital Mining Technologies, a division within business area Sandvik Mining and Rock Solutions (SMR). Impact on Sandvik's earnings per share will be accretive.

Sandvik acquired Deswik in April 2022, and MCB and Deswik has operated on a joint venture basis in supporting customers across Latin America – primarily in Brazil, but also in Chile, Peru, Argentina and Mexico. Deswik acquired 30% of MCB's shares in 2019 and the acquisition of the whole company strengthens Deswik's leading position within the Latin American market. MCB, which trades as Deswik Brazil, brings strong customer relationships with a number of important open pit mines in the region, supporting SMR's strategic objective to grow within the surface mining segment.

Stockholm, April 3, 2023 

Sandvik AB

For further information, contact Louise Tjeder, VP Investor relations, phone: +46 (0) 70782 6374 or Johannes Hellström, Press and Media Relations Manager, phone: +46 (0) 70721 1008.

The following files are available for download:

https://mb.cision.com/Main/208/3746314/1963904.pdf

Sandvik expands in Latin America through the acquisition of MCB Services and Minerals

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SOURCE Sandvik

FAQ

What is the significance of Sandvik's acquisition of MCB Services and Minerals?

The acquisition enhances Sandvik's digital mining capabilities and market presence in Latin America, particularly in surface mining.

When did Sandvik complete the acquisition of MCB?

Sandvik completed the acquisition of MCB on April 3, 2023.

How much revenue did MCB generate in 2022?

MCB generated revenues of SEK 60 million in 2022.

What impact will the acquisition have on Sandvik's financials?

The acquisition is expected to be accretive to Sandvik's earnings per share.

How does the acquisition of MCB fit into Sandvik's overall strategy?

It supports Sandvik's strategic goal of expanding its operations in the surface mining segment within Latin America.