Sandvik has signed an agreement to divest its Exploration business to Drillman. Drillman 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 business is currently reported in Sandvik Mining and Rock Technology.
The Exploration business will remain consolidated in the financial statements of Sandvik Mining and Rock Technology until the closing of the transaction, which is expected during Q4 2020. In 2019, the Exploration business had revenues of about SEK 450M and a margin slightly dilutive to Sandvik Mining and Rock Technology.