Sandvik Mining and Rock Technology is buying Cleveland-based Allied Construction Products LLC, a distributor of hydraulic hammers to the construction and mining industries and manufacturer of compactor plates and mounting brackets. Terms were not disclosed.
The deal is intended to enhance Sandvik's sales, service and support platform for a growing North American customer base. Sandvik also expects it to allow the company to expand its existing dealer network into new regions and to penetrate new customer segments with a broader product offering.
Allied and Sandvik have had a strategic partnership since 2003. The Swedish company was already a 21 percent minority shareholder of Allied, which is the U.S. distributor for Sandvik's Rammer products. Sandvik’s products generate about 80% of Allied’s $29 million in sales.
Allied has 38 employees.
The deal, which should close in the third quarter, is expected to be neutral to Sandvik’s earnings per share.
