Sandvik signs agreement to divest its Mining Systems operations
July 18 2016 - 7:38AM
Business Wire
Regulatory News:
Sandvik (STO:SAND) has signed an agreement to divest its
Mining Systems operations, reported in the Sandvik income statement
as discontinued operations, to the private equity company CoBe
Capital. Sandvik will maintain ownership of ongoing projects which
are close to finalization.
The closing of the transaction is expected during the fourth
quarter of 2016, subject to the satisfaction of certain conditions
precedent. The parties have agreed not to disclose the purchase
price.
The transaction entails a capital loss of -800 million SEK
impacting the result of Sandvik’s discontinued operations for the
third quarter of 2016. The capital loss includes a negative cash
flow impact of -600 million SEK, primarily in conjunction with
the closing of the deal.
Mining Systems is a supplier of design and engineering of
material handling systems for the mining industry. In 2015 the
Mining Systems operations, with 1,100 employees, had annual sales
of 5 billion SEK representing 6% of Sandvik Group revenues, and an
operating loss was reported at a low single digit margin level.
“Divesting the Mining Systems is an important step in
consolidating Sandvik to its core operations, which for Sandvik
Mining and Rock Technology is high technology mining equipment and
aftermarket offerings”, says Bj�rn Rosengren, President and CEO of
Sandvik.
The intention to divest Mining Systems was first communicated
through a press release 1 October 2015.
Stockholm, 18 July 2016
Sandvik AB
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Sandvik Group
Sandvik is a high-tech and global engineering group offering
products and services that enhance customer productivity,
profitability and safety. We hold world-leading positions in
selected areas – tools and tooling systems for metal cutting;
equipment and tools, service and technical solutions for the mining
and construction industries; products in advanced stainless steels
and special alloys as well as products for industrial heating. In
2015, the Group had approximately 45,000 employees and sales of 86
billion SEK in more than 150 countries within continuing
operations.
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Sandvik ABAnn-Sofie NordhHead of Investor Relationstel +46 8 456
1494orPär AltanHead of External Communicationstel +46 70 616
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