STOCK TITAN

Sandvik exits non-strategic businesses

Rhea-AI Impact
(Low)
Rhea-AI Sentiment
(Neutral)
Tags

Sandvik has announced strategic changes in its business focus, resulting in the divestment of non-core assets. The company has sold the engineer-to-order business of DWFritz Automation to Balmoral Funds and decided to exit its minority stake in BEAMIT, an Italian additive manufacturing service provider. These moves align with Sandvik's renewed focus on software solutions, enabling hardware, and metal powders in additive manufacturing.

The company will incur charges of approximately SEK 390 million in the third quarter, reported as items affecting comparability. This includes a capital loss of about SEK 250 million from the DWFritz divestment and a write-down of SEK 140 million related to the BEAMIT stake. Sandvik will retain the ZeroTouch® platform, which is important to its closed loop strategy. Both DWFritz and BEAMIT were previously reported under the Sandvik Manufacturing and Machining Solutions business area.

Sandvik ha annunciato cambiamenti strategici nel suo focus aziendale, portando alla dismissione di asset non core. L'azienda ha venduto l'attività di ingegneria su ordinazione di DWFritz Automation a Balmoral Funds e deciso di uscire dalla sua partecipazione minoritaria in BEAMIT, un fornitore italiano di servizi di produzione additiva. Queste mosse si allineano con il rinnovato focus di Sandvik su soluzioni software, hardware abilitanti e polveri metalliche nella produzione additiva.

L'azienda sosterrà oneri di circa SEK 390 milioni nel terzo trimestre, riportati come elementi che influenzano la comparabilità. Questo include una perdita di capitale di circa SEK 250 milioni derivante dalla dismissione di DWFritz e una rettifica di valore di SEK 140 milioni relativa alla partecipazione in BEAMIT. Sandvik manterrà la piattaforma ZeroTouch®, che è importante per la sua strategia a ciclo chiuso. Sia DWFritz che BEAMIT erano precedentemente riportati sotto l'area di business delle Soluzioni di Produzione e Macchinazione di Sandvik.

Sandvik ha anunciado cambios estratégicos en su enfoque empresarial, lo que ha resultado en la desinversión de activos no centrales. La compañía ha vendido el negocio de ingeniería a pedido de DWFritz Automation a Balmoral Funds y decidido salir de su participación minoritaria en BEAMIT, un proveedor italiano de servicios de fabricación aditiva. Estos movimientos se alinean con el renovado enfoque de Sandvik en soluciones de software, hardware habilitante y polvos de metal en la fabricación aditiva.

La empresa incurrirá en cargos de aproximadamente SEK 390 millones en el tercer trimestre, reportados como elementos que afectan la comparabilidad. Esto incluye una pérdida de capital de unos SEK 250 millones de la desinversión de DWFritz y un ajuste de SEK 140 millones relacionado con la participación en BEAMIT. Sandvik conservará la plataforma ZeroTouch®, que es importante para su estrategia de ciclo cerrado. Tanto DWFritz como BEAMIT se reportaban previamente bajo el área de negocio de Soluciones de Fabricación y Maquinado de Sandvik.

샌드빅(Sandvik)은 사업 초점을 전략적으로 변경하고 비핵심 자산을 매각하기로 결정했다고 발표했습니다. 이 회사는 DWFritz Automation의 주문형 엔지니어링 사업을 발모랄 펀드(Balmoral Funds)에 매각했고, 이탈리아의 적층 제조 서비스 제공업체인 BEAMIT의 지분을 매각하기로 결정했습니다. 이러한 조치는 소프트웨어 솔루션, 하드웨어 지원 및 적층 제조에서 금속 분말에 대한 샌드빅의 새로워진 초점과 일치합니다.

회사는 약 390백만 크로나(SEK)의 비용이 3분기에 발생할 것으로 예상하며, 이는 비교 가능성에 영향을 미치는 항목으로 보고됩니다. 여기에는 DWFritz 매각에서 발생한 약 250백만 크로나의 자본 손실과 BEAMIT 지분과 관련된 140백만 크로나의 가치 하락이 포함됩니다. 샌드빅은 폐쇄 루프 전략에 중요한 ZeroTouch® 플랫폼을 유지할 것입니다. DWFritz와 BEAMIT는 모두 이전에 샌드빅 제조 및 기계 솔루션 사업 영역에서 보고되었습니다.

Sandvik a annoncé des changements stratégiques dans son focus commercial, entraînant la cession d'actifs non essentiels. L'entreprise a vendu l'activité d'ingénierie selon commande de DWFritz Automation à Balmoral Funds et a décidé de se retirer de sa participation minoritaire dans BEAMIT, un prestataire italien de services de fabrication additive. Ces mouvements s'alignent avec le nouvel accent de Sandvik sur les solutions logicielles, le hardware habilitant et les poudres métalliques dans la fabrication additive.

La société enregistrera des charges d'environ 390 millions SEK au troisième trimestre, rapportées comme des éléments affectant la comparabilité. Cela inclut une perte en capital d'environ 250 millions SEK provenant de la cession de DWFritz et une dépréciation de 140 millions SEK liée à la participation dans BEAMIT. Sandvik conservera la plateforme ZeroTouch®, qui est importante pour sa stratégie en boucle fermée. À la fois DWFritz et BEAMIT étaient précédemment rapportés sous le domaine d’activité des Solutions de Fabrication et d'Usinage de Sandvik.

Sandvik hat strategische Änderungen in seiner Geschäftsausrichtung angekündigt, die zur Veräußerung von nicht zum Kerngeschäft gehörenden Vermögenswerten geführt haben. Das Unternehmen hat das ingenieurgesteuerte Geschäft von DWFritz Automation an Balmoral Funds verkauft und beschlossen, seine Minderheitsbeteiligung an BEAMIT, einem italienischen Anbieter von additiven Fertigungsdienstleistungen, abzustoßen. Diese Maßnahmen stimmen mit Sandviks neuem Fokus auf Softwarelösungen, hardwarefähige Technologien und Metallpulver in der additiven Fertigung überein.

Das Unternehmen wird im dritten Quartal Aufwendungen von etwa 390 Millionen SEK in Rechnung stellen, die als vergleichbare Elemente ausgewiesen werden. Dies umfasst einen Kapitalverlust von etwa 250 Millionen SEK aus der Veräußerung von DWFritz und eine Wertminderung von 140 Millionen SEK in Bezug auf die Beteiligung an BEAMIT. Sandvik wird die ZeroTouch®-Plattform beibehalten, die wichtig für seine Closed-Loop-Strategie ist. Sowohl DWFritz als auch BEAMIT wurden zuvor im Bereich Sandvik Manufacturing and Machining Solutions aufgeführt.

Positive
  • Strategic realignment to focus on core businesses in software solutions and enabling hardware
  • Retention of the valuable ZeroTouch® platform for near-line and in-line metrology
  • Streamlining operations by divesting non-strategic assets
Negative
  • Incurring charges of approximately SEK 390 million in Q3
  • Capital loss of about SEK 250 million from DWFritz divestment
  • Write-down of SEK 140 million related to BEAMIT stake

STOCKHOLM, Sept. 27, 2024 /PRNewswire/ -- At the Capital Markets Day 2023, Sandvik communicated the intention to increase the focus on software solutions and enabling hardware in the Sandvik Manufacturing Solutions offering. Furthermore, Sandvik communicated a revised additive manufacturing strategy to focus mainly on metal powders. As a consequence of these changes in strategic direction, the engineer-to-order business of DWFritz Automation (DWFritz) has been divested and the decision to seek an exit of the minority stake in BEAMIT has been made during the quarter. Charges totaling approximately SEK 390 million will be accounted for in the third quarter and reported as items affecting comparability. Out of the total charges, approximately SEK 250 million relates to a capital loss, including transactional costs, from the divestment of DWFritz, and about SEK 140 million relates to a write-down of the stake in BEAMIT.

Sandvik has divested the engineer-to-order business of DWFritz to the U.S.-based private equity firm Balmoral Funds. Sandvik acquired DWFritz in 2021, with the intention to grow the ZeroTouch® business of DWFritz. The ZeroTouch® platform is a unique inspection gauging equipment enabling near-line and in-line metrology and is an important part of the closed loop strategy. Since the acquisition, Sandvik has developed and started to commercialize ZeroTouch®, which will not be part of the divestment but remain a part of Sandvik.

Additionally, Sandvik has decided to seek an exit of its minority stake (approx. 30%) in the Italian additive manufacturing service provider BEAMIT. The decision to seek an exit is in line with Sandvik's revised additive manufacturing strategy to focus mainly on metal powders.

DWFritz and the BEAMIT holding have both been reported within 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

This information was brought to you by Cision http://news.cision.com.

https://news.cision.com/sandvik/r/sandvik-exits-non-strategic-businesses,c4044116

The following files are available for download:

https://mb.cision.com/Main/208/4044116/3027132.pdf

Sandvik exits non-strategic businesses

 

Cision View original content:https://www.prnewswire.com/news-releases/sandvik-exits-non-strategic-businesses-302261128.html

SOURCE Sandvik

FAQ

What businesses is Sandvik (SDVKY) exiting?

Sandvik is exiting the engineer-to-order business of DWFritz Automation and seeking to exit its minority stake (approximately 30%) in BEAMIT, an Italian additive manufacturing service provider.

How much will Sandvik (SDVKY) charge in Q3 2024 for these exits?

Sandvik will charge approximately SEK 390 million in the third quarter of 2024, reported as items affecting comparability.

Who purchased the engineer-to-order business of DWFritz from Sandvik (SDVKY)?

The U.S.-based private equity firm Balmoral Funds purchased the engineer-to-order business of DWFritz from Sandvik.

What is Sandvik (SDVKY) retaining from the DWFritz acquisition?

Sandvik is retaining the ZeroTouch® platform, which is a unique inspection gauging equipment enabling near-line and in-line metrology and is important to their closed loop strategy.

SANDVIK AB S/ADR

OTC:SDVKY

SDVKY Rankings

SDVKY Latest News

SDVKY Stock Data

23.42B
1.25B
0%
Specialty Industrial Machinery
Industrials
Link
United States of America
Stockholm