Sandvik to acquire Extec and Fintec
SANDVIK have announced that they are to acquire two major UK-based manufacturers of mobile crushing and screening equipment – Extec and Fintec.
The Swedish-based global industrial group has reached agreement with private equity owners 3i to acquire Extec Screens and Crushers Ltd, based in Swadlincote, near Derby.
Simultaneously, Sandvik have also reached agreement with the majority owner of Fintec Crushing and Screening Ltd (Fintec), based in Ballygawley, Co. Tyrone, to acquire that company. Sandvik currently have a minority shareholding (49%) in Fintec and will, after completion of the transaction, become the sole shareholder.
Both acquisitions are expected to be completed during the second quarter of 2007.
Extec and Fintec are leaders in the design and manufacture of mobile crushing and screening equipment, including consumables and services, to the international construction industry.
Extec employ 450 people and had sales of SEK1,800 million (approx. £136 million) in 2006. They have manufacturing facilities in Derbyshire and Northern Ireland as well as sales and service facilities in Australia, the US and Germany.
Fintec employ 325 people and had sales of SEK560 million (approx. £42 million) in 2006.
Lars Josefsson, president of Sandvik Mining and Construction, who last year achieved annual sales of around SEK 25,000 million (approx. £1.9 billion), said: ‘These acquisitions are in line with the Sandvik’s long-term strategy of continued profitable growth and our aim is to become the leading supplier of mobile crushing and screening solutions to the market.
‘By acquiring Extec and Fintec we will extend our customer offering by adding mid-size and light crushing and screening equipment, and thereby become a strong supplier in this fast-growing industry.
‘Extec and Fintec have modern manufacturing facilities, are strong in R&D and have well-developed distribution networks. This, in combination with Sandvik’s global resources, will make it possible to grow our crushing and screening business into new markets and service our customers even better.’