Sandvik has reached agreement with private equity owners 3i to acquire Extec Screens and Crushers Ltd, close to Birmingham, UK.
Simultaneously an agreement has been reached with the majority owner of Fintec Crushing and Screening Ltd (Fintec), close to Belfast, UK, to acquire the company. Sandvik currently has a minority shareholding in Fintec and will after the completion of this transaction become the only shareholder.
The acquisitions are expected to be completed during the second quarter of 2007.
Extec and Fintec, respectively, are leading in the design and manufacture of mobile crushing and screening equipment, including consumables and services to the international construction industry.
Extec employs 450 people and had a sales of 1800 MSEK in 2006. It has a manufacturing facilities in Birmingham and Northern Ireland as well as sales and service facilities in Australia, USA and Germany.
Fintec employs 325 people and had sales of 560 MSEK in 2006.
"These acquisitions are in line with the Sandvik's long-term strategy of continued profitable growth and our aim is to become the leading supplier of mobile crushing and screening solutions to the market. By acquiring Extec and Fintec we will extend our customer offering by adding mid-size, and light crushing and screening equipment and thereby become a strong supplier in this fast growing industry", says Lars Josefsson, President Sandvik Mining and Construction.
"Extec and Fintec have modern manufacturing facilities, are strong in R & D and have well developed distribution networks. This in combination with Sandvik's global resources will make it possible to grow our crushing and screening business into new markets and service our customers even better", says Lars Josefsson.