Sandvik completes the acquisition of US based round tools manufacturer GWS Tool Group

Rhea-AI Summary

Sandvik has successfully acquired 100% of GWS Tool Intermediate Holdings LLC, a US-based manufacturer of round tools focusing on engineering and aerospace. The acquisition, valued at SEK 875 million in projected 2021 revenues, is expected to have a neutral impact on Sandvik's EBITA margin and EPS initially. GWS will operate within Sandvik Manufacturing and Machining Solutions division, enhancing Sandvik's portfolio in the fast-growing round tools market.

Positive

• Acquisition expands Sandvik's portfolio in the engineering and aerospace sectors.
• Pro forma revenues of SEK 875 million for GWS enhance market position.
• GWS's established presence supports potential synergies in operations.

Negative

• None.

STOCKHOLM, Dec. 23, 2021 /PRNewswire/ -- Sandvik has completed the previously announced acquisition of the 100% equity interests of the US based company GWS Tool Intermediate Holdings LLC ("GWS" or the "Company") from its beneficial owners, L Squared Capital Partners and GWS management. GWS is an established and fast growing provider of made-to-order round tools with a large exposure to the general engineering and aerospace segments.

For 2021, on a pro forma basis, the company is expected to have revenues of approximately SEK 875 million. The impact on Sandvik's EBITA margin and earnings per share will initially be neutral.

The company will be reported in Walter, a division within the business area Sandvik Manufacturing and Machining Solutions.

For further information, contact Louise Tjeder, VP Investor relations, phone: +46 (0) 70782 6374 or Johannes Hellström, Press and Media Relations Manager, phone: +46 (0) 70721 1008.

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Sandvik completes the acquisition of US based round tools manufacturer GWS Tool Group

 

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SOURCE Sandvik

FAQ

What is the significance of Sandvik's acquisition of GWS Tool Intermediate Holdings LLC?

The acquisition allows Sandvik to enhance its offerings in the engineering and aerospace segments, providing a strategic expansion of its product portfolio.

What are the expected revenues from the acquisition of GWS Tool by Sandvik?

GWS Tool is projected to generate approximately SEK 875 million in revenues for 2021.

How will the acquisition impact Sandvik's EBITA margin and earnings per share?

The acquisition is expected to initially have a neutral impact on Sandvik's EBITA margin and earnings per share.

In which division will GWS Tool be reported within Sandvik?

GWS Tool will be reported within the Walter division of Sandvik Manufacturing and Machining Solutions.