SOUTHEAST ASIA CONSTRUCTION27 Dec 2020
Sandvik to acquire DSI Underground

Sandvik has signed an agreement to acquire DSI Underground, a global leader in ground support and reinforcement products, systems and solutions for the underground mining and tunnelling industries. The company will be reported in Sandvik Mining and Rock Solutions.

“This acquisition is an important step in our growth ambition. 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,” said Stefan Widing, president and CEO of Sandvik.

DSI Underground is present in 70 countries, with 22 production units situated close to end customers. The product offering includes bolting systems, injection chemicals and resin capsules.

“With the world’s most extensive choice of ground support products and systems, the DSI Underground’s offering is highly complementary and enables us to deliver greater value and safety to our customers,” added Henrik Ager, president of Sandvik Mining and Rock Solutions.

“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.”

In a separate statement, Michael Reich, CEO of DSI Underground commented, “DSI Underground fits very well with Sandvik Mining and Rock Solutions. 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. At the same time, we will be able to expand our global reach and combine our offering with Sandvik products and services – for the benefit of our customers. My colleagues at DSI Underground are looking very much forward to becoming part of Sandvik.”

DSI Underground has approximately 2,000 employees. The company’s revenue for 2020 is expected to be about €518 million (excluding the four joint ventures that are part of the acquisition). The purchase price is approximately €943 million on a cash and debt free basis.

The transaction is expected to close by mid-2021 and is subject to relevant regulatory approvals.