Sandvik completes the acquisition of PCD tools manufacturer
Sandvik has finalized the acquisition of Portugal-based Frezite, known for its polycrystalline diamond (PCD) tools used in metal and wood applications.
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Rhea-AI Summary
Sandvik has finalized the acquisition of Portugal-based Frezite, known for its polycrystalline diamond (PCD) tools used in metal and wood applications. Frezite generated revenues of approximately SEK 450 million in 2021, though its EBITA margin is slightly dilutive to Sandvik's Manufacturing and Machining Solutions. The acquisition aims to enhance Sandvik's capabilities in key sectors such as automotive and aerospace, with a limited but positive impact on Sandvik's earnings per share.
Positive
- Acquisition expands Sandvik's capabilities in PCD tools for automotive and aerospace sectors.
- Frezite generated revenue of approximately SEK 450 million in 2021.
- Strategic fit within Sandvik's Manufacturing and Machining Solutions division.
Negative
- Frezite's EBITA margin is slightly dilutive to Sandvik's overall performance.
Details
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STOCKHOLM, Sept. 2, 2022 /PRNewswire/ -- Sandvik has completed the previously announced acquisition of the Portugal-based company Frezite. Frezite's offering primarily consists of made-to-order polycrystalline diamond (PCD) tools for metal and wood applications, with exposure to the automotive, general engineering and aerospace segments. The company will be reported within Walter, a division within Sandvik Manufacturing and Machining Solutions.
In 2021, the company had revenues of approximately SEK 450 million and an EBITA margin that is slightly dilutive to Sandvik Manufacturing and Machining Solutions. Impact on Sandvik's earnings per share will be limited, yet positive.
Stockholm, September 2, 2022
Sandvik AB
For further information, contact Louise Tjeder, Vice President Investor Relations, phone: +46 70 782 6374 or Johannes Hellström, Press and Media Relations Manager, phone: +46 70 721 1008.
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SOURCE Sandvik
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