Sandvik's acquisition of Svedala finalized
- Sales increase by SEK 1,400 M
- Earnings per share rise as of 2002
- New business sector created within Mining and Construction
The competition authorities have now granted approval for Metso Corporation of Finland to complete its acquisition of Svedala. As previously announced, this means that Sandvik is acquiring the operations of Svedala's crushing and screening unit in Sweden and France, with sales of about SEK 1,400 M and 900 employees.
Sandvik is acquiring assets valued at SEK 550 M. In addition, Metso Svedala offers Sandvik a consignment stock valued at about SEK 300 M. The acquisition is assessed to provide a positive contribution to Group earnings as of 2002, with an operating margin on level with the average for the business area. Consolidation is from and including 1 October 2001.
The operations form a new business sector, Sandvik Rock Processing, within Sandvik Mining and Construction. Nils-Evert Karlsson, formerly Senior Vice President Environment and President of Business Area Associated Products of the Svedala Group and President of Svedala-Arbrå is appointed President of the new business sector. He will be based in Svedala, Sweden.
"Svedala's products complement our range and are aimed at the same customer group. Through a broader product assortment, we can now offer our customers a highly competitive total solution," says Anders Ilstam, President of Sandvik Mining and Construction.
Sandviken, 11 September 2001
Sandvik AB; (publ)