Sandvik acquires privately owned Inrock, a leading supplier of rock drilling tools and services for horizontal directional drilling (HDD) in North America. Headquartered in Houston, US, Inrock is a market leader in pilot hole bits, reamers, guidance systems, accessories and services for the premium maxi rig segment within HDD.
“In line with our strategy, this demonstrates how we gear up for growth organically and through acquisitions in areas where we are stable and profitable, aiming for world-leading market positions. I welcome Inrock to our group,” says Björn Rosengren, CEO and President of Sandvik.
The combined expertise of Sandvik Mining and Rock Technology and Inrock will support further development of the HDD product portfolio to customers operating and servicing infrastructure applications such as oil and gas pipelines, water and sewer, telecommunications, electricity and alternative energy production and storage. This includes expanding into the midi rig segment, accelerating the global footprint of the business but also realizing synergies within production.
“I am pleased to see that we leverage our materials knowledge and supply infrastructure to drive growth in the consumables and service business, since it is important in maintaining and improving our relationship with customers, as well as adding long-term stability to our earnings,” says Henrik Ager, head of Rock Tools.
In 2017, Inrock had revenues of $46m and 70 employees. Impact on earnings per share will initially be neutral to slightly positive. Parties have agreed not to disclose the purchase price.
The transaction was closed today and as of the third quarter 2018, Inrock will be reported as part of the product area Rock Tools within business area Sandvik Mining and Rock Technology.