- DSI to acquire Jennmar businesses in Australia, Europe, Latin America and China (50% share)
- Jennmar to acquire DSI US Mining business
- Customers will benefit from broadest product offering on the market and combined resources
Luxembourg, February 2nd 2016 - Jennmar and DSI have signed an agreement under which DSI will acquire Jennmar businesses in Australia, Europe, Latin America and China (50% share). Jennmar China, along with well-established jointly owned businesses in South Africa and Australia, will operate under the ROCBOLT Technologies brand.
Combining the strengths of Jennmar and DSI organizations will allow DSI to offer its customers the most comprehensive portfolio in ground support products and services. Envisaged improvements will significantly enhance DSI’s customer service level and R&D resourcing, while further improving its cost position. DSI will be in an excellent position to offer its customers an unmatched quality of service and build on its further strengthened global presence in the current subdued economic climate of the mining industry.
Patrik Nolåker, Group CEO of DSI, commented on the transaction: “Soft commodity prices and supply/demand imbalances represent important challenges to our customers in mining. Through this acquisition, DSI will combine the strengths of two well-established market players, which will allow it to provide its customers a superior offering, both from an efficiency and a product & service portfolio perspective.”
In a separate agreement, Jennmar has agreed to acquire DSI’s Mining business in the United States, which will be integrated into Jennmar’s existing US business. The combined business will be controlled 100% by FCI and operated under the Jennmar brand. DSI’s Tunneling business in the US will remain 100% owned by DSI.
“DSI’s strong presence in Western US hard rock mining will further strengthen Jennmar’s position in this segment of the market. On the other side, its activities in coal mining will complement our existing strong footprint and close some gaps in our offering”, explains Tony Calandra, Executive Vice President of Jennmar.
The Australian transaction is conditional on approval from the antitrust authority in Australia.