Sandvik acquires South African supplier to exploration industry
Sandvik has entered an agreement covering the acquisition of the South African company Corstor International (Pty) Ltd.
Corstor is a leading company within the manufacture and sale of borehole core storage and handling systems for the mining and exploration industries. Corstor also distributes analysis and survey equipment as well as accessories to the mining and exploration industries in Africa.
Sales amount to approximately SEK 70 M per year and the company has 100 employees. The head office and the largest production plant is located outside Johannesburg, South Africa. The company also has sales and service offices in Ghana and Tanzania.
"Corstor is innovative within the design and development of systems for the storage and handling of borehole cores. The customer offering comprises advanced systems for the storage of borehole cores and includes equipment to analyze cores in an environmentally conscious and safe manner. The products are an excellent complement to the business area's range aimed at the rapidly expanding exploration industry," says Lars Josefsson, President of the Sandvik Mining and Construction business area.
"The increase in exploration activities in Africa entails favorable growth opportunities for Sandvik combined with the potential to expand in other markets through Sandvik's global network."
The acquisition is subject to approval by the relevant competition authorities in South Africa and is expected to be concluded during the first quarter of 2008.
Sandviken, 22 January 2008
Sandvik AB; (publ)