Epiroc to buy mining electrification company

Image: Epiroc

Epiroc is set to acquire Canada-based Meglab in a bid to support the mining sector’s transition to battery-electric vehicles.

Meglab, an employer of 240 people, is a designer, manufacturer and installer of electrification and telecommunications infrastructure, with products spanning from system design and substations to switch gears and automation systems.

It has delivered solutions for mining companies such as Newmont, Goldcorp and Kirkland Lake Gold in Canada.

Epiroc did not disclose the value of the acquisition but stated that it was not material relative to its market capitalisation.

Epiroc president and chief executive Helena Hedblom said the acquisition would strengthen its capacity to provide the infrastructure required as mines transitioned to battery-electric vehicles.

“Epiroc is proud to be the leader in providing battery-electric vehicles for the mining industry, improving customers’ work environment and lowering their emissions while increasing their productivity,” she said.

Meglab will be part of Epiroc’s parts and services division once the acquisition is complete, which is targeted for the second quarter of this year.

Meglab generated a revenue of around $50 million last year and will continue to be based in Canada.

Epiroc announced a streak of acquisition involving Innovative Mining Products in South Africa and Fordia Group in Canada in 2018.

In the same year, the Swedish equipment manufacturer purchased a 34 per cent interest in Autonomous Solution subsidiary ASI Mining.

The streak continued into 2019 when Epiroc acquired New Concept Mining and Noland Drilling Equipment while divesting its consumables businesses.

Epiroc reported a revenue of SEK36 billion ($5.4 billion) in 2020.

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