PR Newswire | May 7, 2021 04:23AM EDT

05/07 03:22 CDT

Sandvik to acquire screens and feeders manufacturer Kwatani SANDVIKEN, Sweden, May 7, 2021

SANDVIKEN, Sweden, May 7, 2021 /PRNewswire/ -- Sandvik has signed a deal to acquire the South African based company Kwatani, a leading supplier of screens and feeders for the mining industry. The product offering includes screens, feeders, fine separators, drives and services. The company will be reported in Stationary Crushing and Screening, a division in Sandvik Rock Processing Solutions.

"I am pleased that we are continuing to execute on our strategy to grow through acquisitions and at the same time strengthening our position in rock processing. I look forward to welcome Kwatani to our Group," says Stefan Widing, President and CEO of Sandvik.

The acquisition of Kwatani, which is the first since the Sandvik Rock Processing Solutions business area was established at the beginning of 2021, will expand Sandvik's equipment range and complement the existing aftermarket product and services portfolio. Kwatani's strong offering in large multi slope screens for the mining industry will add to Sandvik's existing portfolio while also strengthening the Group's position in Africa.

"Kwatani's offering of large vibrating screens and feeders for the mining industry is in line with our strategy to strengthen our capabilities in comminution and will be a good complement to Sandvik's strong competence and experience within stationary crushing and screening. This will further accelerate our growth within rock processing", says Anders Svensson, President of Sandvik Rock Processing Solutions.

Kwatani is headquartered in Johannesburg, South Africa, and has about 150 employees. In 2020 Kwatani had revenues of about 175 million SEK and an EBIT margin slightly dilutive to Sandvik Rock Processing Solutions. Impact on Sandvik's earnings per share will initially be neutral.

The transaction is expected to close during the fourth quarter 2021 and is subject to relevant regulatory approvals.

Stockholm, May 7, 2021

Sandvik AB

For further information, contact Louise Tjeder, Vice President Investor Relations, phone: +46 70 782 6374 or Johannes Hellstrm, Press and Media Relations Manager, phone: +46 79 098 2670.

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SOURCE Sandvik