By Dominic Chopping

STOCKHOLM--Swedish engineering group Sandvik AB said Friday that it has agreed to sell its exploration business to Drillman, a subsidiary of Australia's M Group of Companies.

Drillman provides equipment and technical support to the geotechnical, mineral exploration, horizontal, directional and upstream gas drilling sectors, among others.

The deal includes exploration rigs, consumables and production stock, along with selected trademarks and patents.

"We have signed an agreement to sell our exploration business as this is in line with our focus to further improve the efficiency and profitability of our company," Sandvik Chief Executive Stefan Widing said.

In 2019, the exploration business had revenue of about 450 million Swedish kronor ($50.8 million) and a margin slightly dilutive to Sandvik's mining and rock technology unit.

The parties have agreed to not disclose the purchase price.

Closing is expected during the fourth quarter of 2020.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

October 09, 2020 06:41 ET (10:41 GMT)

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