Atlas Copco AB announced in December it plans to acquire the underground business of GIA Industri AB from Vätterledens Verkstad AB. The transaction will enable Atlas Copco to broaden its product portfolio to include electric mine trucks, utility vehicles and ventilation systems.
GIA Industri AB, founded in 1884, has been owned by Vätterledens Verkstad AB since 1994. Its headquarters and production facility is located in Grängesberg, Sweden. The acquired business has 113 employees and annual revenues of about SEK230 million ($33.3 million). The seller will retain the operations of GIA that are not related to mining. The parties did not disclose the purchase price.
“The acquisition of GIA is a good strategic fit for Atlas Copco. We are entering new market segments and will be able to serve customers with an even broader product portfolio,” said Bob Fassl, Business Area President for Atlas Copco Mining and Rock Excavation Technique. “We especially look forward to offering our customers the Kiruna Electric haulage truck with its strong environmental profile. We see great opportunities in leveraging Atlas Copco’s global sales network for this and GIA’s other products.”
GIA’s products also include locomotives and shuttle car systems for underground transportation, charging and service trucks, scaling and cable bolting equipment, digging arm loaders (Häggloader) and ventilation systems. GIA is mainly represented through distributors.
Also in December, Tenova announced the acquisition of Bateman Engineering N.V., a well known equipment supplier and engineering house for the mining industry. The transaction is subject to the approval of antitrust authorities.
Tenova supplies technologies, products, and services for mining and iron and steel industries. It operates through more than 30 companies located in 22 countries, and reported annual revenues of $1.5 billion before the acquisition. Tenova is part of the Techint Group, a corporation composed of six main companies operating worldwide with an aggregate turnover of $22 billion and employing more than 55,000 people.
Bateman Engineering, which includes Delkor group, will join Tenova TAKRAF and Tenova Pyromet to form a mining business group with more than $1.1 billion in annual revenues and more than 2,400 employees operating in 16 countries on five continents.
“With this acquisition Tenova further broadens its portfolio of products in a market expected to grow constantly in the long term,” said Gianluigi Nova, CEO of Milan, Italy-based Tenova. “The Bateman acquisition will also strengthen Tenova’s global network of well rooted companies present in key markets and integrated in a flexible, customer-oriented organization.”