Sandvik said it will leverage the acquisition of the Ohio-based firm, which distributes and manufactures hydraulic breakers and compactors, to enhance its North American presence.

"[This purchase] also enables Sandvik to expand the existing dealer network into new regions and to penetrate new customer segments with a broader product offering", it said. 

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.

Founded in 1942, Allied Construction Products generated revenues of approximately US$29 million last year with 38 employees.

The parties have agreed not to disclose the purchase price, only saying the transaction is expected to close during the September quarter of 2020.