Sandvik 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 one of the market's leading manufacturers and suppliers 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.
The acquisition was completed on 8 June, 2006 (Australia time), immediately after the execution of a definitive purchase agreement, and UDR Group became 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. "Particulary, 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 has signed a 5 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.
Sandviken, 8 June 2006
Sandvik AB; (publ)