Sandvik has signed an agreement to divest its Exploration business to Drillman, a subsidiary of the M Group of companies, which is 100% owned and operated in Australia. Drillman provides equipment and technical support to the Geotechnical, Mineral Exploration, Horizontal, Directional and Upstream Gas Drilling sectors, among others.
The deal includes exploration rigs, consumables and production stock, along with selected trademarks and patents. The business is currently reported in Sandvik Mining and Rock Technology. “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,” says Stefan Widing, President and CEO of Sandvik.
The parties have agreed not to disclose the purchase price and the closing is subject to relevant regulatory approvals. The Exploration business will remain consolidated in the financial statements of Sandvik Mining and Rock Technology until closing of the transaction, which is expected during the fourth quarter 2020. In 2019, the Exploration business had revenues of about SEK 450 million and a margin slightly dilutive to Sandvik Mining and Rock Technology.
Courtesy of Sandvik.