Sandvik to acquire US based round tools manufacturer GWS Tool Group
Sandvik has announced its agreement to acquire GWS Tool Intermediate Holdings LLC, a US-based manufacturer of round tools, from L Squared Capital Partners and GWS management. The acquisition aims to enhance Sandvik's machining solutions business, increasing market share in round tools and expanding its North American presence. GWS, expected to generate revenues of approximately SEK 875 million for 2021, will complement Sandvik's existing product offerings, particularly in the general engineering and aerospace markets. The transaction is set to close in Q4 2021, subject to regulatory approvals.
- Acquisition of GWS strengthens Sandvik's positioning in the North American market.
- GWS's product offerings are complementary to Sandvik's existing tools, enhancing customer value.
- Expected high single-digit organic growth rate in GWS's revenue indicates strong business potential.
- None.
SANDVIKEN, Sweden, Nov. 22, 2021 /PRNewswire/ -- Sandvik has signed an agreement to acquire
"With the acquisition of GWS, we take an important step in our shift to growth strategy where we have a clear ambition for our machining solutions business to increase market share in round tools and to enhance our presence in the North American market", says Stefan Widing, CEO and President of Sandvik.
GWS primarily sells made-to-order products, such as polycrystalline diamond tools and taps, which are complementary to Walter's standard product offering. GWS' strong operational presence in the US and speed to market capabilities improves Walter's value proposition and position in the manufacturing of advanced components and light-weight materials, while strenghtening and complementing Walter's current customer end-market exposure.
"We are pleased to add the GWS product portfolio to our existing US offering and become a one-stop shop for round tools for our North American customers. GWS brings us complementary production capabilities and strenghtens our foothold within general engineering and aerospace, while having only a limited, low-single digit exposure to internal combustion engines. With its solid position within custom round tools and strong customer focus, GWS is a great fit for Sandvik Machining Solutions", says Nadine Crauwels, President of Sandvik Machining Solutions.
GWS is headquartered in Florida, USA, and has around 490 employees. For 2021, on a pro forma basis, the Company is expected to have revenues of approximately SEK 875 million. GWS has had strong revenue growth historically, and is expected to grow at a high single digit organic growth rate in the medium term. The impact on Sandvik's EBITA margin and 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 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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SOURCE Sandvik
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