Sandvik announced that they have acquired privately-owned Inrock, a supplier of rock drilling tools and services for horizontal directional drilling (HDD) in North America. Headquartered in Houston, Inrock is a manufacturer in pilot hole bits, reamers, guidance systems, accessories and services for the premium maxi rig segment within HDD.
“In line with our strategy, this demonstrates how we gear up for growth organically and through acquisitions in areas where we are stable and profitable, aiming for world-leading market positions. I welcome Inrock to our group,” says Björn Rosengren, CEO and president of Sandvik.
The combined expertise of Sandvik and Inrock will support further development of the HDD product portfolio to customers operating and servicing infrastructure applications such as oil and gas pipelines, water and sewer, telecommunications, electricity, and alternative energy production and storage. This includes expanding into the midi rig segment, accelerating the global footprint of the business, but also realizing synergies within production.
“I am pleased to see that we leverage our materials knowledge and supply infrastructure to drive growth in the consumables and service business, since it is important in maintaining and improving our relationship with customers, as well as adding long-term stability to our earnings,” says Henrik Ager, head of product area, Rock Tools.
In 2017, Inrock had revenues of $46 million and 70 employees. Impact on earnings per share will initially be neutral to slightly positive. Parties have agreed not to disclose the purchase price.
Sandvik is a high-tech and global engineering group offering advanced products and services that enhance customer productivity, profitability and safety. The group specializes in tools for the mining and construction industries, among other things. In 2014, the group had about 47,000 employees and representation in approximately 130 countries. To learn more, go to www.sandvik.com.