Sandvik, Stockholm, Sweden, has signed an agreement with Major Drilling Group International Inc., Canada, to acquire the business and assets of the Australian company UDR Group, including its business units in Australia and Chile.
UDR Group is a manufacturer and supplier of surface mineral exploration drill rigs. UDR Group reported sales for the last business year of about SEK 275 M (AUD 48 M) and has approximately 100 employees.
The purchase price for the transaction was AUD 46 M on a cash and debt free basis, subject to customary working capital related post closing adjustments.
UDR Group becomes part of Sandvik Mining and Construction as of that date.
“The acquisition is in line with the Sandvik Group’s long-term strategy of continued profitable growth. With this acquisition and the recently concluded acquisitions of SDS Corporation and Hagby-Asahi AB, Sandvik has established itself as a full-service provider to the mineral exploration industry. UDR is a company with a strong market position, particularly in Australia and Latin America, and we intend to continue our expansion globally within mineral exploration,” says Lars Josefsson, President of the Sandvik Mining and Construction business area. “Particularly, UDR’s strength in multi-purpose exploration drill rigs will be a very strong contributor to Sandvik’s offering within the mineral exploration field.”
As a part of the transaction, Sandvik and Major Drilling have signed a five-year strategic cooperation and supply agreement. Under this agreement the two parties will cooperate within product development and Sandvik and UDR will remain as a preferred supplier of mineral exploration rigs and consumables to Major Drilling.
Sandvik has 39,000 employees, operations in 130 countries and annual sales of approximately SEK 63,000 M. Sandvik Mining and Construction is a business area within the Sandvik Group and a world-leading manufacturer of drilling and excavation machinery, tools and service for the mining and construction industries. Annual sales amount to SEK 20,600 M, with about 10,600 employees.
Based in Moncton, New Brunswick, Canada, Major Drilling Group International Inc. is one of the world’s largest drilling service companies serving the mining industry. To support its customers’ varied drilling requirements, Major Drilling maintains operations in Canada, the United States, Portugal, Mexico, South and Central America, and in Australia, Indonesia, Tanzania, Mongolia and China. Major Drilling’s stock trades on The Toronto Stock Exchange under the symbol “MDI.’
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