Sandvik provides an update on M&A costs and PPA impact for the fourth quarter
Sandvik has increased the pace of acquisitions in 2021 as part of its shift to growth strategy, resulting in 13 closed or signed acquisitions during the year. As a consequence, Sandvik expects for the fourth quarter to report transaction costs of around SEK 180 million related to the recently announced acquisitions as well as an increased level of amortisation of surplus values (PPA), estimated to be around SEK 260 million.
Sandvik Manufacturing and Machining Solutions will report transaction costs of around SEK 105 million in total for the fourth quarter. The total amortisation of surplus values (PPA) for the quarter is estimated to be approximately SEK 170 million.
As previously communicated, the transaction costs for Sandvik Mining and Rock Solutions of approximately SEK 50 million are mainly related to the signed acquisition of Deswik, announced on December 2, 2021: Sandvik to acquire leading mine planning software company Deswik. The total amortisation of surplus values (PPA) impact for the fourth quarter is estimated to be approximately 90 MSEK, of which SEK 50 million relates to the newly acquired company DSI Underground.
Out of the total signed or closed acqusistions so far in 2021, seven acquisitions are within Sandvik Manufacturing and Machining Solutions, three in Sandvik Mining and Rock Solutions, one in Sandvik Rock Processing Solutions and two in Sandvik Materials Technology.
Stockholm, December 23, 2021
Sandvik AB
For further information, contact Louise Tjeder, Vice President Investor Relations, phone: +46 70 782 6374 or Johannes Hellström, Press and Media Relations Manager, phone: +46 70 721 10 08.
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Sandvik Group
Sandvik is a high-tech and global engineering group offering products and services that enhance customer productivity, profitability and sustainability. We hold world-leading positions in selected areas – tools and tooling systems for metal cutting; equipment and tools, service and technical solutions for the mining industry and rock excavation within the construction industry; products in advanced stainless steels and special alloys as well as products for industrial heating. In 2020 the Group had approximately 37,000 employees and revenues of about 86 billion SEK in more than 160 countries within continuing operations.
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