Sandvik has signed an agreement to divest its exploration business to Australian company Drillman.
Drillman – a subsidiary of the M Group of Companies – provides equipment and technical support to the geotechnical, mineral exploration, horizontal, directional and upstream gas drilling sectors, among others.
The deal includes exploration rigs, consumables and production stock, along with selected trademarks and patents.
The parties have agreed not to disclose the purchase price and the closing is subject to relevant regulatory approvals.
“I am pleased that we have signed an agreement to sell our exploration business as this is in line with our focus to further improve the efficiency and profitability of our company,” Sandvik president and chief executive officer Stefan Widing said.
M Group of Companies chief executive officer Harry Mostert said the group was very excited to acquire Sandvik’s Exploration business and looked forward to collaborating throughout the transition.
“The acquisition forms part of our long-term strategy to expand our international footprint and we are eager to introduce our passion for the mining and exploration business into the global market,” he said.