Sandvik to acquire metrology and automation company DWFritz Automation
On July 12, 2021, Sandvik announced the acquisition of US-based DWFritz Automation, a leader in precision metrology and automation for advanced manufacturing. This strategic move aims to enhance Sandvik's capabilities in metrology and automation, allowing for improved quality and cost reduction across the value chain. DWFritz, with a revenue of approximately SEK 720 million (USD 78 million) in 2020 and over 2,000 systems installed globally, will strengthen Sandvik's position in high-speed, non-contact inspection technologies. The deal is expected to close in the second half of 2021, pending regulatory approvals.
- Acquisition of DWFritz Automation enhances Sandvik's metrology and automation offerings.
- Enables Sandvik to provide full metrology solutions, reducing costs and improving quality for customers.
- Strategic alignment with Sandvik's focus on growth in industrial software and advanced manufacturing sectors.
- DWFritz's EBIT margin is slightly dilutive to Sandvik Manufacturing and Machining Solutions.
- Financial impacts on Sandvik's earnings per share are expected to be initially neutral.
STOCKHOLM, July 12, 2021 /PRNewswire/ -- Sandvik has signed an agreement to acquire US based DWFritz Automation Inc., a leading global provider of precision metrology, inspection- and assembly solutions for advanced manufacturing. DWFritz Automation designs, builds and supports engineer-to-order high-speed, non-contact metrology solutions and automation systems. The company will be reported in the Metrology division, within business area Sandvik Manufacturing and Machining Solutions.
"This is in line with our strategic focus to grow organically and through acquisitions in the advanced manufacturing space, with special focus on industrial software, industrial metrology- and additive manufacturing solutions," says Stefan Widing, President and CEO of Sandvik.
With DWFritz Automation, Sandvik would expand its current metrology offering and take a leading position in in-line metrology, including a broader position in high-speed, high-volume, non-contact inspection and assembly automation.
"By acquiring DWFritz Automation we will be able to expand our metrology and automation offering further. This will not only strengthen our position, but will also enable us to offer full metrology solutions to our customers - which will reduce cost and improve quality significantly in their broader value chain. I look forward to welcoming the DWFritz team to Sandvik," says Kim Hansen, President of the Metrology division in Sandvik Manufacturing Solutions.
DWFritz Automation is headquartered in Wilsonville, Oregon, USA - with offices in France and China. The company is a trusted partner of many Fortune 500 customers, with over 2,000 systems installed worldwide. In 2020, the company had about 560 employees, revenues of approximately SEK 720 million (USD 78 million) and an EBIT margin slightly dilutive to Sandvik Manufacturing and Machining Solutions. Impact on Sandvik's earnings per share will initially be neutral. The parties have agreed not to disclose the purchase price.
The transaction is expected to close during the second half of 2021, subject to customary regulatory approvals.
Stockholm, July 12, 2021
Sandvik AB
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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