Stockholm, Sweden-based Sandvik signed an agreement with Major Drilling Group International, Canada, to acquire the business and assets of the Australian company UDR Group, including its business units in Australia and Chile.

UDR Group manufactures and supplies surface mineral exploration drill rigs. UDR Group reported sales for the last business year of about SEK 275 million (37.9 million U.S.) and has approximately 100 employees.

The purchase price for the transaction was AUD $46 million (34.2 million U.S.) on a cash and debt free basis, subject to customary working capital related post closing adjustments.

The acquisition was completed on June 8.

"The acquisition is in line with the Sandvik Group's long-term strategy of continued profitable growth,” said Lars Josefsson, president of the Sandvik Mining and Construction business area. “With this acquisition and the recently concluded acquisitions of SDS Corporation and Hagby-Asahi AB, Sandvik has established itself as a full-service provider to the mineral exploration industry.”

Sandvik is a high-technology engineering group with products including tools for metalworking, machinery and tools for rock excavation, stainless steel, special alloys and resistance heating materials and process systems.

Sandvik Mining and Construction is a business area within the Sandvik Group and a world-leading manufacturer of drilling and excavation machinery, tools and service for the mining and construction industries.