Sandvik to acquire the Polish round tools company Fanar

Rhea-AI Summary

Sandvik has signed a deal to acquire Polish manufacturer Fabryka Narzędzi FANAR S.A. to enhance its round tools offerings. The acquisition aims to strengthen Seco's product range, particularly in taps and solid threading applications, while expanding Sandvik's presence in the Polish market. In 2020, Fanar generated revenues of approximately SEK 175 million. The transaction is expected to close in Q4 2021, pending regulatory approvals. The purchase price remains undisclosed, with limited impact anticipated on Sandvik's earnings per share.

Positive

• Acquisition of FANAR enhances Seco's product offerings in round tools.
• Strengthens Sandvik's presence in the growing Polish market.
• Fanar's integration is expected to align with Sandvik's growth strategy.

Negative

• None.

SANDVIKEN, Sweden, July 15, 2021 /PRNewswire/ -- Sandvik has signed an agreement to acquire the Polish company Fabryka Narzędzi FANAR S.A. (Fanar), a manufacturer of round tools. The company will be reported in Seco, a division within the business area Sandvik Manufacturing and Machining Solutions.

"We continue to execute on our growth strategy and this acquisition is an additional step to strenghten our  round tools offering" says Stefan Widing, President and CEO of Sandvik.

The acquisition enhances Seco's product offering in taps and solid threading applications and improves the presence in Poland and the growing market for round tools.

"I am very pleased that we have reached an agreement to acquire Fanar, it will enhance our presence in the important Polish market and strengthen our exposure to our focused segments" says Nadine Crauwels, President of business area segment Sandvik Machining Solutions.

Fanar was established in 1966, is headquartered outside Warsaw and has 230 employees. In 2020, Fanar had revenues of about SEK 175 million. Impact on Sandvik's earnings per share will be limited. The parties have agreed not to disclose the purchase price.

The transaction is expected to close during the fourth quarter of 2021 and is subject to relevant regulatory approvals.

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 to acquire the Polish round tools company Fanar

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SOURCE Sandvik

FAQ

What is the purpose of Sandvik's acquisition of FANAR?

The acquisition aims to enhance Sandvik's round tools offerings and expand its market presence in Poland.

How much revenue did FANAR generate in 2020?

FANAR generated approximately SEK 175 million in revenue in 2020.

When is the acquisition of FANAR expected to close?

The acquisition is expected to close during the fourth quarter of 2021, subject to regulatory approvals.

What impact will the acquisition of FANAR have on Sandvik's earnings per share?

The impact on Sandvik's earnings per share is expected to be limited.

What strategic importance does the acquisition of FANAR hold for Sandvik?

The acquisition is part of Sandvik's growth strategy to strengthen its offerings in taps and threading applications.