Active portfolio management
We continuously review the business portfolio in Sandvik to maximize shareholder value. Each unit is expected to deliver continuous improvements and to be or become No. 1 or No. 2 in its industry.
Internal separation of Sandvik Materials Technology is ongoing
In May 2019 we announced the initiation of the internal separation of the business area Sandvik Materials Technology from the remainder of the Sandvik group. We will also explore the possibility of a separate listing, by distributing Sandvik Materials Technology to Sandvik’s shareholders (Lex Asea). The internal separation is planned to be completed during 2020. The final decision about a separate listing is yet to be made.
Sandvik Materials Technology on its own:
- Strengthened opportunity for strategic priorities and long-term profitable growth.
- Evaluated on its own merits and compared to relevant peers.
- Full focus on developing the business.
- M&A in focus.
The number of acquisitions has increased since 2018, supported by a strong balance sheet. Business areas that are already stable and profitable identify its own growth focus areas and acquisition targets.
Sandvik Machining Solutions
Focus on growing the round tools operations as well as the digital offering.
- Metrologic, a French company which is a market leader in agnostic metrology software.
- Three acquisitions to expand the round tools offering have been completed with a focus primarily on the aerospace and fast-growing Chinese electronics industries. Acquired companies are OSK, Wetmore and Dura-Mill.
Sandvik Mining and Rock Technology
Focus on the digital offering as well as technology and product bolt-ons.
- Newtrax, a supplier of leading technology in wireless connectivity to monitor and provide insights on underground operations, including people, machines and the environment.
- Inrock, a leading supplier of rock drilling tools and services for Horizontal Directional Drilling (HDD) in North America.
- Artisan, the leading supplier of Battery Electric Vehicle mining solutions.
Sandvik Materials Technology
Primary focus for acquisitions is the Kanthal division through consolidation in a fragmented market.
- Custom Electric Manufacturing, a leading manufacturer of original equipment and replacement heating elements on the North American market.
In recent years a number of businesses have been divested as they were viewed as non-core to Sandvik or not an area where we believe will be a leading supplier. Divestments include Hyperion, Sandvik Process Systems, Wire.