Sandvik to acquire US-based custom tooling manufacturer Peterson Tool Company
On May 11, 2022, Sandvik announced its acquisition of Peterson Tool Company, a US-based supplier of custom tooling solutions primarily for the automotive and general engineering sectors. With 73 employees and 2021 revenues of 9 million USD, Peterson Tool will be integrated into Sandvik's GWS Tool business unit. This move aligns with Sandvik's growth strategy to enhance its North American market presence. The transaction will slightly positively impact Sandvik's earnings per share, with completion expected in the second or third quarter of 2022.
- Acquisition enhances Sandvik's positioning in the North American market.
- Integration aligns with Sandvik's growth strategy and expands product offerings in key sectors.
- Peterson Tool's expertise in custom carbide solutions strengthens Sandvik's GWS Tool business unit.
- Limited immediate impact on earnings per share despite strategic alignment.
- Integration challenges may arise due to differing corporate cultures.
SANDVIKEN, Sweden, May 11, 2022 /PRNewswire/ -- Sandvik has signed an agreement to acquire the assets of US based company Peterson Tool Company, Inc., ("PTC") a leading supplier of machine-specific custom insert tooling solutions. The product offering includes custom carbide form inserts for high-production turning and grooving applications, primarily within the general engineering and automotive segments. The company will be reported in the GWS Tool business unit in Walter, a division within the business area Sandvik Manufacturing and Machining Solutions.
"The acquisition of Peterson Tool Company is well aligned with the shift to growth strategy to enhance our presence in the North American market and continuing GWS' strong track record of growth", says Stefan Widing, CEO and President of Sandvik.
"I am pleased that we continue to execute on our shift to growth strategy by expanding our offering towards the important general engineering and automotive segments. Peterson Tool Company adds to the GWS' solid position within custom cemented carbide solutions and is a great fit for our business area", says Nadine Crauwels, President of Sandvik Machining Solutions.
PTC is headquartered in Nashville, USA, and has 73 employees. In 2021 the company had revenues of 9 million USD and an EBITA margin neutral to Sandvik Manufacturing and Machining Solutions. Impact on Sandvik's earnings per share will be limited, yet slightly positive. The transaction is expected to close during the second or third quarter of 2022.
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VP Investor relations
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SOURCE Sandvik
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