Sandvik to buy DSI Underground for $1.16 billion
By Murray PollokDecember 27, 2020
Sandvik has agreed to buy DSI Underground from Triton for $1.16 billion. DSI is a $615-million revenue business that provides ground support and reinforcement technology for underground mines and tunnels.
DSI, which will become part of Sandvik’s Mining and Rock Solutions division, was originally part of the German-based DYWIDAG construction business, which more recently operated as DYWIDAG-Systems International (DSI). It has been owned by European private equity business Triton since 2011.
DSI has 2,000 employees and is active in 70 countries, with 20 production facilities.
DSI Underground’s business includes tunnel reinforcement.
“This acquisition is an important step in our growth ambition”, said Stefan Widing, President and CEO of Sweden-based Sandvik, ”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”.
Henrik Ager, President of Sandvik Mining and Rock Solutions, said DSI was complementary to its existing business; ”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 tunnelling”.
Sandvik Mining and Rock Solutions works in mining and construction with services including rock drilling and cutting, loading and hauling, tunneling and quarrying.
Michael Reich, CEO of DSI Underground, said the deal ushered in a new chapter; ”We believe that we have a strong new industrial home in Sandvik, with good growth opportunities and strong product and geographic synergies. Sandvik’s strategy is to invest in strong businesses with good growth potential.
”With our knowledge of ground support technologies, we can add a valuable and complementary offering to Sandvik Mining and Rock Solutions. 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.”
The transaction is expected to close by mid-2021 and is subject to regulatory approvals.