Sandvik acquires Allied Construction
Sandvik Mining and Rock Technology has signed an agreement to acquire Allied Construction Products LLC (Allied), a US distributor of hydraulic hammers to the construction and mining industries and manufacturer of compactor plates and mounting brackets.
The acquisition of Allied establishes an enhanced sales, service and support platform for the growing North American customer base. It also enables Sandvik to expand the existing dealer network into new regions and to penetrate new customer segments with a broader product offering. Allied will obtain additional strength and access to cutting edge technology.
Allied and Sandvik Mining and Rock Technology have had a strategic partnership since 2003, with Allied being the US distributor for Rammer products. Sandvik Mining and Rock Technology was already a 21% minority shareholder of the company and Sandvik’s products generates about 80% of Allied’s revenues.
In 2019 the company generated revenues of approximately 29 million USD with 38 employees. The parties have agreed not to disclose the purchase price and the transaction is expected to close during the third quarter 2020. The deal is neutral to Sandvik’s earnings per share from the start.
Stockholm, 9 July 2020
For further information, contact
Anna Vilogorac, Investor Relations Officer
Tel: +46 8 456 11 94
Martin Blomgren, Press and Media Relations Manager
Tel: +46 70 577 0549
Sandvik is a high-tech and global engineering group offering products and services that enhance customer productivity, profitability and safety. We hold world-leading positions in selected areas – tools and tooling systems for metal cutting; equipment and tools, service and technical solutions for the mining industry and rock excavation within the construction industry; products in advanced stainless steels and special alloys as well as products for industrial heating. In 2019, the Group had approximately 40,000 employees and revenues of about 100 billion SEK in more than 160 countries within continuing operations.
Sandvik Mining and Rock Technology
Sandvik Mining and Rock Technology is a business area within the Sandvik Group and a global leading supplier of equipment and tools, service and technical solutions for the mining and construction industries. Application areas include rock drilling, rock cutting, crushing and screening, loading and hauling, tunneling, quarrying and breaking and demolition. In 2019, sales were approximately 45 billion SEK with about 14,000 employees in continuing operations.