Sandvik completes the acquisition of Chuzhou Yongpu Carbide Tools Co., Ltd
On August 20, 2021, Sandvik announced the completion of its acquisition of 67% of Chuzhou Yongpu Carbide Tools Co., Ltd, a China-based premium solid round tools company.
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Rhea-AI Summary
On August 20, 2021, Sandvik announced the completion of its acquisition of 67% of Chuzhou Yongpu Carbide Tools Co., Ltd, a China-based premium solid round tools company. This transaction allows Sandvik to expand its market presence, with revenues of approximately SEK 400 million for the prior twelve months. The acquisition has an initial neutral impact on earnings per share and is expected to enhance Sandvik's manufacturing capabilities. A call option for the remaining shares exists after three years.
Positive
- Acquisition of 67% stake in Chuzhou Yongpu enhances market presence.
- Expected revenue contribution of approximately SEK 400 million.
- Strategic fit within Sandvik Coromant division.
Negative
- Dilutive EBIT margin impact to Sandvik Manufacturing and Machining Solutions.
- Initial neutral impact on earnings per share.
Details
News Market Reaction – SDVKY
The recorded move for SDVKY in the trading session of this news was +0.83%.
Data tracked by StockTitan Argus. Session date unavailable.
AI-generated analysis. How Rhea-AI works. Not financial advice.
SANDVIKEN, Sweden, Aug. 20, 2021 /PRNewswire/ -- Sandvik has completed the previously announced acquisition of
The company had revenues of approximately SEK 400 million for the twelve month period Q2 2020 to Q1 2021, an EBIT margin slightly dilutive to Sandvik Manufacturing and Machining Solutions. Impact on earnings per share will initially be neutral.
The company will be reported in Sandvik Coromant, a division within Sandvik Manufacturing and Machining Solutions.
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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SOURCE Sandvik
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