Australian conveyor OEM Nepean Conveyors will acquire Sandvik’s International Conveyor Components businesses and Sandvik’s Specialist Conveyor Systems business in Hollola, Finland, for an undisclosed sum.
Announcing the deal this week, Nepean chief executive Miles Fuller said the acquisition is a great fit with the organisation’s existing conveyor businesses.
“Nepean will gain significant facilities in Europe, Scandinavia, Brazil and Western Australia in addition to our existing operations on the east and west coast of Australia and Africa. We will also gain a broad range of advanced technology, leading products and associated IP,” says Mr Fuller.
The acquisition includes 195,000 square metres of manufacturing operations in Germany, Brazil, Australia, and Finland, and will see roughly 340 Sandvik staff join Nepean. The acquired Sandvik businesses include the PROK, GURTEC and ROXON brands, among others.
“The conveyor business is core to Nepean,” Fuller continued. “We see this acquisition as a very exciting opportunity to bring together two respected industry leaders in materials handling.”
Through the acquisition, Nepean says its customers will have access to the significant IP developed via Sandvik’s outstanding engineering and manufacturing capabilities. The OEM said new product lines, including market-leading composite roller technologies, will be brought to market as a priority.
“Nepean’s relentless drive to deliver for our clients will ensure customers benefit from reduced lead times, and have access to quality conveyor components for aftermarket and major projects in any location globally,” Fuller said.
As for the Sandvik Conveyor Components businesses, Fuller said the addition solidified Nepean’s position as the largest manufacturer of pulleys and idlers in Australia, and grew its position as a global leader.
“Our service offering and the wider suite of products, positions Nepean as the number one choice for quality conveyor components,” he said.
“This is a major milestone and credit to the Nepean team. Our passionate employees, technical strength, lean overheads, vertically-integrated capabilities and the respect we have earned from the industry over 43 years has positioned us for this exciting growth opportunity.
“Our investment in Sandvik’s Conveyor businesses, and more importantly Sandvik’s customers and employees, is a further commitment to an industry we know well. It is a key step in NEPEAN’s journey to be the global leader in innovative conveyor components.”