“DSI’s strong presence in western U.S. hard rock mining will further strengthen Jennmar’s position in this segment,” said Tony Calandra, executive vice president, Jennmar. “On the other side, its activities in coal mining will complement our existing strong footprint and close some gaps in our offering.”
DSI will acquire Jennmar’s Latin America business, which includes Mexico, Chile and Peru, as well as Jennmar’s companies in Europe (namely Spain, Czech Republic and Poland). All of the transactions are expected to close by the beginning of March. In addition, DSI will acquire Jennmar Australia; this transaction is contingent upon a review by the Australian Competition Commission.
“Soft commodity prices and supply/demand imbalances represent important challenges to our customers in mining,” said Patrik Nolåker, group CEO of DSI. “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 and service portfolio perspective.”
In addition to these transactions, FCI is selling a 50% stake in its Chinese subsidiary Jennmar Asia, creating another Rocbolt Technologies joint venture between Jennmar and DSI. These companies will do business as Rocbolt Technologies (China) and will join two other successful joint ventures between Jennmar and DSI, Rocbolt Technologies (South Africa) and Rocbolt Resins (Australia).
