Bulletin: Sandvik Has Ample Financial Flexibility To Accommodate Its Planned Acquisition Of DSI Underground - S&P Global Ratings’ Credit Research

Bulletin: Sandvik Has Ample Financial Flexibility To Accommodate Its Planned Acquisition Of DSI Underground

Bulletin: Sandvik Has Ample Financial Flexibility To Accommodate Its Planned Acquisition Of DSI Underground - S&P Global Ratings’ Credit Research
Bulletin: Sandvik Has Ample Financial Flexibility To Accommodate Its Planned Acquisition Of DSI Underground
Published Jan 11, 2021
3 pages (1376 words) — Published Jan 11, 2021
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Abstract:

STOCKHOLM (S&P Global Ratings) Jan. 11, 2021--S&P Global Ratings today said that Sweden-based capital goods company Sandvik AB (A-/Stable/A-2) has ample financial flexibility to absorb the planned €943 million (about Swedish krona [SEK] 9.5 billion) acquisition of Germany-based DSI Underground, a leading supplier of ground support products, systems, and solutions for the underground mining and tunneling industry. We understand that Sandvik will finance the acquisition with cash on hand, but expect the company will maintain its strong balance sheet, with funds from operations (FFO) to debt above 70% in 2021. This compares with our forecast of adjusted FFO to debt well above 100%, and adjusted debt to EBITDA below 0.5x at year-end 2020. We believe that the acquisition will complement

  
Report Type:

Bulletin

Ticker
SAND@SS
Issuer
Sandvik AB
GICS
Industrial Machinery (20106020)
Sector
Global Issuers
Country
Sweden
Region
Europe, Middle East, Africa
Format:
PDF Adobe Acrobat
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Bulletin: Sandvik Has Ample Financial Flexibility To Accommodate Its Planned Acquisition Of DSI Underground" Jan 11, 2021. Alacra Store. May 13, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Bulletin-Sandvik-Has-Ample-Financial-Flexibility-To-Accommodate-Its-Planned-Acquisition-Of-DSI-Underground-2577694>
  
APA:
S&P Global Ratings’ Credit Research. (). Bulletin: Sandvik Has Ample Financial Flexibility To Accommodate Its Planned Acquisition Of DSI Underground Jan 11, 2021. New York, NY: Alacra Store. Retrieved May 13, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Bulletin-Sandvik-Has-Ample-Financial-Flexibility-To-Accommodate-Its-Planned-Acquisition-Of-DSI-Underground-2577694>
  
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