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Sandvik Acquires DSI Underground Joint Ventures, Rocbolt Technologies

Sandvik Acquires DSI Underground Joint Ventures, Rocbolt Technologies

Sandvik’s acquisition of DSI Underground, a global leader in ground support and reinforcement products, systems and solutions for the underground mining and tunneling industries, was closed on July 7, 2021. The acquisition included DSI’s ownership stake in four joint ventures (“Rocbolt Technologies”) based in China, South Africa, Mongolia and Australia.

On August 3, 2021, Sandvik signed and completed three agreements to acquire the joint venture partner’s (Jennmar) share of the Rocbolt Technologies JVs in China, South Africa and Mongolia. Jennmar will continue to be a JV partner in Australia.

Rocbolt Technologies will be reported in the Ground Support Division of business area Sandvik Mining and Rock Solutions.

In 2020, DSI Underground had revenues of about EUR 516 million (excluding the four joint ventures). The three JVs that will now be fully consolidated had revenues of around EUR 80 million in 2020.

The DSI acquisition, including purchase price allocation, accounting treatments related to the acquisition, and full consolidation of the three JVs, will in total be dilutive to the EBIT margin for Sandvik Mining and Rock Solutions by up to 300 basis points during the second half of 2021. In 2022 the EBIT margin for Sandvik Mining and Rock Solutions will be diluted around 170 basis points.

Both parties have agreed not to disclose the purchase price.

Sandvik Aims To Lead In Premium Solid Round Tools With New Acquisition

Sandvik Aims To Lead In Premium Solid Round Tools With New Acquisition

Sandvik has signed an agreement to acquire 67 per cent of Chuzhou Yongpu Carbide Tools Co., Ltd, a China based premium solid round tools company, with a call option to buy the remaining part in three years’ time. Chuzhou Yongpu Carbide Tools Co., Ltd is mainly focused on global and local OEMs and connected suppliers operating in China. Its capabilities include the full solid round tools manufacturing value chain with an offer covering blanks, cutting tools, reconditioning and coating services. The company will be reported in Sandvik Coromant, a division within Sandvik Manufacturing and Machining Solutions.

Stefan Widing, President and CEO of Sandvik, says, “The acquisition of Chuzhou Yongpu Carbide Tools Co., Ltd is part of our strategy for our machining solutions business to increase our market share and take a leading position in solid round tools, and at the same time expand further in the Asian market. We are looking forward to welcoming Chuzhou Yongpu Carbide Tools Co., Ltd to the Sandvik Group.”

Chuzhou Yongpu Carbide Tools Co., Ltd will continue to operate under its own brand and focus on developing its offer and market share with the ambition to become a leading premium provider of solid round tools in China. The combined expertise and footprint of Sandvik Coromant and Chuzhou Yongpu Carbide Tools Co., Ltd will drive further geographical expansion in the region, particularly for cutting tools.

“We have long-term strategic commitment to strengthen and develop our business. China is a fast-growing market for solid round tools, and the acquisition of Chuzhou Yongpu Carbide Tools Co., Ltd will further strengthen our presence and enhance our offer to customers in this important region. With its premium position and strong customer focus, Chuzhou Yongpu Carbide Tools Co., Ltd is a great fit for Sandvik Machining Solutions“, says Nadine Crauwels, President of Sandvik Machining Solutions.

Chuzhou Yongpu Carbide Tools Co., Ltd is headquartered in Chuzhou, China, and has around 500 employees. It had revenues of approximately SEK 400 million for the twelve month period Q2 2020 to Q1 2021, an EBIT margin slightly dilutive to Sandvik Manufacturing and Machining Solutions. Impact on earnings per share will initially be neutral.

The transaction is expected to close during the third quarter of 2021.

 

ZEISS Acquires GOM To Furthers Its Goal Of Technological Leadership In Industrial Metrology And Quality Assurance

ZEISS Acquires GOM To Furthers Its Goal of Technological Leadership in Industrial Metrology and Quality Assurance

ZEISS is expanding the industrial metrology and quality assurance portfolio of its Industrial Quality & Research segment by acquiring GOM, a leading provider of hardware and software for automated 3D coordinate measuring technology. Both ZEISS and GOM have enjoyed strong growth in the past years and proved successful on the market. The aim is to further strengthen this leading technological position together, especially in the area of optical digitisation systems. The combination of existing products and solutions as well as joint innovations in the future will lay the foundation for shaping and entering new markets.

“Our growth strategy expressly mentions the targeted acquisition of highly innovative solutions, technologies and companies, which can reach their full potential as part of the ZEISS Group,” said Dr. Michael Kaschke, President & CEO of ZEISS. “By acquiring GOM and thereby expanding our solutions portfolio, we are bolstering the leading position of our Industrial Quality & Research segment and will be able to offer even better solutions for our customers. This is entirely in keeping with our corporate strategy, which is focused on our customers’ success.”

Combining the ZEISS product portfolio with the optical 3D measuring technology from GOM has the potential to create new opportunities and expand market access for Industrial Quality & Research. GOM offers cutting-edge solutions for surface digitisation, which will strengthen ZEISS in this area. Dr. Jochen Peter, Member of the ZEISS Executive Board and Head of the Industrial Quality & Research segment, explained: “With this acquisition, we are pursuing our goal of achieving a leading position in the area of surface measurement and digitisation. Customers and users in both areas will benefit from the strengths of GOM and ZEISS in the areas of software and hardware.”

“Being part of the ZEISS Group will open up new opportunities for GOM in the future, which will also positively impact the site in Braunschweig and our business partners. By pooling ZEISS and GOM’s process and solutions know-how, we can tap into new customer segments and applications,” said Dr. Detlef Winter, Managing Director of GOM.

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Reed Exhibitions Acquires Mack Brooks

Reed Exhibitions Acquires Mack Brooks

Reed Exhibitions, a division of RELX, has completed its acquisition of Mack Brooks Exhibitions.

Mack Brooks‘ flagship brands include EuroBLECH (sheet metal working technology); inter airport (airport infrastructure and technology); Fastener Fair (fastener and fixing technology); Chemspec (fine and speciality chemicals); RAILTEX (rail infrastructure and technology); ICE Europe (paper, film and foil converting); CCE (manufacturing and converting corrugated and cartonboard); PSE Europe (plastics) and InPrint (print technology for industrial manufacturing).

The acquisition expands Reed Exhibitions‘ global portfolio by more than 30 business-to-business events in 14 countries, delivering value for stakeholders, including customers and staff. Nicola Hamann will continue as Managing Director of Mack Brooks, and the company will continue to be based in St Albans, UK.

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Puris Acquired By Carpenter For US$35M

Puris Acquired By Carpenter For US$35M

Philadelphia, United States: 3D printing metal powder company Puris has been acquired by Carpenter Technology Corporation. The deal worth US$35 million will involve all of Puris’ assets and business, including their titanium powder production patents.

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