Swedish mining equipment and stainless steel provider Sandvik has agreed to acquire DSI Underground for €943mn ($1.2bn) from Triton Partners. The unit is to be included in the Sandvik Mining and Rock Solutions (SMR) division.
Stefan Widing, president and chief executive officer of Sandvik, stated that the acquisition includes the four DSI joint ventures that operate in the same business segment. As part of the synergy, DSI Underground will leverage Sandvik’s sales network and research. The acquisition is expected to finalize by mid-2021.
DSI Underground is a ground support and reinforcement products supplier for the underground mining and tunneling industries with about 2,000 employees spread across 22 production units worldwide. The company’s standalone 2020 revenue is projected at €518mn ($636mn). Hard rock mining segments make up around 65pc of DSI’s sales from end markets while 10pc is from soft rock mining, 21pc from tunneling and infrastructure, and 4pc from other segments.
SMR’s growth plan includes focusing on rapidly growing commodities, expanding aftermarket offerings, increasing automation and digitalization, and accelerate mergers and acquisitions, Sandvik indicated in a media statement.