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Drilling Industry NewsConstruction DrillingMining & Mineral Exploration DrillingFoundation Drilling

Sandvik Buys Distributor Allied Construction Products LLC

Deal Extends Mining and Rock Technology Dealer Network

Sandvik Mining Academy
July 31, 2020

Sandvik Mining and Rock Technology has signed an agreement to acquire Allied Construction Products LLC (Allied), a U.S. distributor of hydraulic hammers for construction and mining, and manufacturer of compactor plates and mounting brackets.

In a release, Sandvik says the Allied acquisition enhances the company’s sales, service and support platform for a growing North American customer base. It also enables Sandvik to expand the existing dealer network into new regions, and to penetrate new customer segments with a broader product offering. Sandvik says Allied will obtain additional strength and access to cutting edge technology.

Allied and Sandvik Mining and Rock Technology have had a strategic partnership since 2003, with Allied being the U.S. distributor for Rammer products. Sandvik Mining and Rock Technology was already a 21% minority shareholder of the company, and Sandvik’s products generate about 80% of Allied’s revenues. In 2019, Allied generated revenues of approximately $29 million USD with 38 employees. The parties have agreed not to disclose the purchase price and the transaction is expected to close during the third quarter 2020. The deal is neutral to Sandvik’s earnings per share.

Sandvik offers equipment, tools, service and technical solutions for the mining industry and rock excavation within the construction industry. The company has more than 40,000 employees worldwide. For more information, visit www.sandvik.com.

KEYWORDS: exploration drilling

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