Sandvik Acquires DSI Underground Joint Ventures and Rocbolt Technologies

Stockholm, Sweden – Sandvik completed its acquisition of DSI Underground, the global leader in ground support and reinforcement products, systems, and solutions for the underground mining and tunneling industries, on July 7, 2021. DSI’s ownership stake in four joint ventures (‘Rocbolt Technologies’) based in China, South Africa, Mongolia, and Australia was included in the acquisition. Sandvik signed and completed three agreements on August 3, 2021, to acquire the Joint Venture partner’s (Jennmar) share of the Rocbolt Technologies JVs in China, South Africa, and Mongolia. Jennmar will remain a joint venture partner in Australia. Rocbolt Technologies will be reported in the Ground Support Division of business area Sandvik Mining and Rock Solutions.

DSI Underground’s revenues in 2020 amounted to approximately €516 million (excluding the four joint venture companies). In 2020, the three JVs that will now be fully consolidated generated around €80 million in revenue. The acquisition of DSI, including purchase price allocation (PPA), accounting treatments related to the acquisition, and full consolidation of the three joint venture companies, will in total be dilutive to Sandvik Mining and Rock Solutions’ EBIT margin by up to 300 basis points during the second half of 2021. Sandvik Mining and Rock Solutions’ EBIT margin will be diluted by approximately 170 basis points in 2022. The parties have agreed not to disclose the purchase price.

Image Source: Magic Wand Media

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