Swedish engineering group Sandvik has embarked on a series of acquisitions throughout the past two months in a push to further expand the group's reach.
Sandvik. Photo: Mats Wiklund / Shutterstock
Photo: Mats Wiklund / Shutterstock
Last month, the group signed an agreement to acquire Oregon-based DWFritz Automation, a company specialising in precision metrology, inspection and assembly equipment for advanced manufacturing. The company designs, builds, and supports engineer-to-order high-speed, non-contact metrology solutions and automation systems.
"By acquiring DWFritz Automation we will be able to expand our metrology and automation offering further. This will not only strengthen our position, but will also enable us to offer full metrology solutions to our customers – which will reduce cost and improve quality significantly in their broader value chain," said Kim Hansen, President of the Metrology division in Sandvik Manufacturing Solutions.
Read more: To adopt Industry 4.0, we must look to the Lighthouses
In mid-July, Sandvik announced it would acquire Polish round tools manufacturer Fanar. The company will be part of Seco, a division within Sandvik's Manufacturing and Machining Solutions division.
“We continue to execute on our growth strategy and this acquisition is an additional step to strengthen our round tools offering,” said Stefan Widing, President and CEO of Sandvik.
The acquisition is intended to enhance Seco’s product offering in taps and solid threading applications and improve the company's presence in Poland and the growing round tools market.
Fanar, established in 1966, is headquartered outside Warsaw and has 230 employees. In 2020, Fanar achieved revenues of about SEK 175 million (€17.1 million).
The transaction is expected to close during the fourth quarter of 2021 and is still subject to regulatory approvals.
In August, Sandvik signed an agreement to acquire US-based CNC Software, a provider of CAD/CAM software solutions for manufacturing industries and the company behind Mastercam, the most widely used Computer-Aided Manufacturing (CAM) brand in the industry.
Also in August, Sandvik signed and completed three agreements to acquire the shares held by DSI Joint Venture partner, Jennmar, in underground mining supply company Rocbolt Technologies businesses in China, South Africa and Mongolia. Jennmar will continue to be a JV partner in Australia.
Last but not least, the company has completed the previously announced acquisition of 67% of China-based Chuzhou Yongpu Carbide Tools Co., Ltd, a solid round tools company, with a call option to buy the remaining part in three years’ time.
Read more: Sweden's Sandvik to buy DSI Underground in €934m deal
Following the recent developments, Sandvik has updated its revenue target for its Manufacturing Solutions arm for 2025 from SEK 4 billion (€390 million) to SEK 6 billion (€587 billion)
With the recently announced acquisitions, Sandvik says that it will establish a platform that, combined with the organic growth of the current business, is expected to exceed the earlier revenue objectives.
“I am very pleased that we have managed to accelerate the M&A activities in Sandvik Manufacturing Solutions which means that we can update our target less than a year after it was set. With this solid platform, we have a completely different outset in executing on the organic growth ambition in the quest of improving our customers’ productivity within the manufacturing industry which is becoming more digital and connected,” said Widing.
Back to Homepage
Back to Construction & Engineering