May 12 2006
Sandvik has reached an understanding with Asahi Diamond Industrial Co Ltd, Japan, to acquire Hagby-Asahi AB, including its subsidiaries in Finland, US and Canada. Hagby-Asahi is one of the market's leading manufacturers and suppliers of diamond tools and equipment for the mining, construction and metal working industries as well as a supplier of diamond drill rigs for mineral exploration.
The acquisition is expected to be completed by 1 July 2006.
Hagby-Asahi AB reported sales in 2005 of about SEK 160 M. The company´s head office is located in Nora, Sweden. In addition to the manufacturing unit in Nora, it has sales offices in Finland, US and Canada. The total number of employees is approximately 100.
Hagby-Asahi AB will be included in Sandvik Mining and Construction but will also supply the Sandvik Tooling business area with products and services within diamond tools.
"The acquisition is in line with the Sandvik Group's long-term strategy of continued profitable growth. Hagby-Asahi is a company with a strong market position, particularly in the Nordic region, and through the acquisition we intend to continue our expansion globally, within exploration" says Lars Josefsson, President of the Sandvik Mining and Construction business area.
"Particulary, Hagby-Asahi's strength within diamond drill technology and mineral exploration complements Sandvik's current operations, while at the same Hagby-Asahi gains access to Sandvik's global resources."
Asahi Diamond Industrial Co Ltd, will remain a supplier to Hagby-Asahi for diamond tools and other diamond-related products.