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Sandvik to sell exploration business to Drillman

Swedish engineering firm Sandvik has agreed to sell its exploration business to Drillman, a subsidiary of the M Group of companies, which is fully owned and operated in Australia.

Drillman caters to the geotechnical, mineral exploration, horizontal, directional, and upstream gas drilling and other sectors with equipment and technical support.

As part of the deal, Sandvik is selling its exploration rigs, consumables, and production stock in addition to certain trademarks and patents. Presently, the business is reported in Sandvik Mining and Rock Technology.

Stefan Widing – President and CEO of Sandvik said: “I am pleased that we have signed an agreement to sell our Exploration business as this is in line with our focus to further improve the efficiency and profitability of our company.

“I believe we have found a good home for our Exploration business in Drillman, who will support in the further development of its operations and performance,” says Henrik Ager, President of Sandvik Mining and Rock Technology.

Sandvik said that the Exploration business will remain consolidated in Sandvik Mining and Rock Technology’s financial statements until the completion of the deal, which is likely to occur during Q4 2020.

Last year, the exploration business had revenues of nearly SEK 450 million and a margin slightly dilutive to Sandvik Mining and Rock Technology.

Harry Mostert – CEO for M Group of Companies said: “We are very excited to acquire Sandvik’s Exploration business and look forward to collaborating throughout the transition.

“The acquisition forms part of our long-term strategy to expand our international footprint and we are eager to introduce our passion for the mining and exploration business into the global market.”

The parties have agreed not to reveal the deal price and the completion is subject to receipt relevant regulatory approvals.

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