PRESS RELEASE: As announced on July 12, Sandvik signed an agreement to divest the project business in Mining Systems to FLSmidth. By also divesting the conveyor components operations, the exit from Mining Systems will be fully executed.
Björn Rosengren, president and CEO of Sandvik, said: “I am pleased that we now have completed our plan enabling us to further focus on Sandvik’s core businesses. Nepean is a truly suitable new owner as they have an ambition to continue to develop this offering.”
Mining Systems is a supplier of design and engineering of material handling systems. In 2016 the operations had annual sales of 2.9 billion SEK (US$344 million), of which the conveyor components parts corresponded to about 20%.
Miles Fuller, CEO of Nepean, said that the acquisition is a great fit with the organisation’s existing conveyor businesses. He added: “Nepean will gain significant facilities in Europe, Scandinavia, Brazil and Western Australia in addition to our existing operations on the east and west coast of Australia and Africa. We will also gain a broad range of advanced technology, leading products and associated IP.”
The acquisition includes 195,000m2 of manufacturing operations located across Germany, Brazil, Australia, and Finland, and will see around 340 Sandvik staff members join Nepean. The acquired Sandvik businesses have a deep and accomplished history, including Prok, Gurtec and Roxon brands.
Fuller noted: “Putting the needs of customers first is part of Nepean’s DNA. We can only prosper if our customers are successful and we are deeply committed to this responsibility. We see this acquisition as a very exciting opportunity to bring together two respected industry leaders in materials handling.”
Through the acquisition, Nepean’s customers will have access to the significant IP developed via Sandvik’s engineering and manufacturing capabilities. New product lines, including market-leading composite roller technologies, will be brought to market as a priority.
Fuller said: “Nepean’s relentless drive to deliver for our clients will ensure customers benefit from reduced lead times, and have access to quality conveyor components for aftermarket and major projects in any location globally.”
Nepean is already the largest manufacturer of pulleys and idlers in Australia. With the acquisition of Sandvik conveyor components, the combined capacity will position Nepean as one of the largest specialists in conveyor components globally; capable of producing many thousands of large engineered pulleys and millions of conveyor rollers annually to service customers in 66 countries.
Fuller added: “Our service offering and the wider suite of products positions Nepean as the number one choice for quality conveyor components.”
Nepean’s conveyor expertise in Australia includes fully-integrated bulk materials handling solutions from the mine to the train or truck load station. With the integration of Sandvik’s assets, Nepean will be positioned to provide an integrated set of solutions for the industry.
Fuller said: “This is a major milestone and credit to the Nepean team. Our passionate employees, technical strength, lean overheads, vertically-integrated capabilities and the respect we have earned from the industry over 43 years has positioned us for this exciting growth opportunity. Our investment in Sandvik’s conveyor businesses, and more importantly Sandvik’s customers and employees, is a further commitment to an industry we know well. It is a key step in Nepean’s journey to be the global leader in innovative conveyor components.”
Details of the transaction were not disclosed. The closing of the transaction is expected by the end of 2017 and is subject to regulatory approvals.