Sandvik to divest majority of Sandvik Drilling and Completions

News
November 7, 2019

November 7, 2019

Sandvik AB, Stockholm, Sweden, has signed an agreement to divest the majority of Sandvik Drilling and Completions, which the company formed following its acquisition of Varel International Energy Services, Inc. in 2014, to private equity firm, Blue Water Energy and its co-investor, the privately owned Nixon Energy Investments. Sandvik will reportedly remain a minority owner of 30% of the company and hold a position on the board.

According to the company, the contribution to Sandvik’s earnings per share from the envisaged minority ownership, reported in associated companies, would have been limited based on the twelve month period ending September 2019. The purchase price for the 70% share of Sandvik Drilling and Completions related to the oil and gas industry now divested by Sandvik, is SEK 900 million on a cash and debt free basis, implying an enterprise value of SEK 1,250 million for the total business. 

Upon closing, the divestment is expected to generate a positive cash flow impact of an estimated SEK 700 million, net of expected transaction costs. Sandvik Drilling and Completions will remain consolidated in the financial statements of Sandvik Mining and Rock Technology until closing of the transaction, which is expected during the first quarter of 2020, and is subject to the approval of relevant authorities. 

“In line with our strategy, we continue to focus Sandvik’s business portfolio to core areas,” stated Björn Rosengren, President and CEO of Sandvik. “While Sandvik keeps the mining related part of Drilling and Completions, the oil and gas related operations will now receive full attention from its new owners to support profitable growth.”

www.home.sandvik

www.bluewaterenergy.com

News
November 7, 2019

In the latest issue of PM Review…

Download PDF

Extensive Powder Metallurgy industry news coverage, and the following exclusive deep-dive articles and reports:

  • From powder modification to rejuvenation: Fluidised Bed Reactors in metal powder production and Additive Manufacturing
  • Retech: Enabling the atomisation of reactive and refractory alloys at substantially higher levels of productivity and lower cost
  • Sustainability in Powder Metallurgy: Highlights from the 41st Hagen Symposium
  • Innovations from Japan’s Powder Metallurgy industry: award winners highlight novel automotive and healthcare applications

The latest news from the world of metal powders, delivered to your inbox

Don't miss any new issue of PM Review, and get the latest industry news. Sign up to our weekly newsletter.

Sign up

Join our community

Discover our magazine archive…

The free-to-access PM Review magazine archive offers unparalleled insight into the world of Powder Metallurgy from a commercial and technological perspective through:

  • Reports on visits to leading PM part manufacturers, metal powder manufacturers and industry suppliers
  • Articles on technology and application trends
  • Information on materials developments
  • Reviews of key technical presentations from the international conference circuit
  • International industry news

All past issues are available to download as free PDFs or view in your browser.

 

Browse the archive

 

Looking for PM production equipment, metal powders, R&D support and more?

Discover suppliers of these and more in our
advertisers’ index and buyer’s guide, available in the back of PM Review magazine.

  • Powders & materials
  • Powder process, classification & analysis
  • PM products
  • Atomisers & powder production technology
  • Compaction presses, tooling & ancillaries
  • Sintering equipment & ancillaries
  • Post-processing
  • Consulting & toll sintering
View online
Share via
Copy link