Sandvik has entered into an agreement covering the acquisition of the American company Precision Twist Drill Co. which is one of the world's leading manufacturers of twist drills.
The company will be organized within CTT Tools, in the Sandvik Tooling Business Area.
Precision Twist Drill, headquartered in Crystal Lake, near Chicago, Illinois, has sales of nearly SEK 1 billion and employs 1,600 persons at two production units in the U.S. The company manufactures mainly twist drills in high-speed steel and cemented-carbide and is a major supplier to the American aerospace and automotive industries.
"Through the acquisition, Sandvik strengthens its position on the American market for high-speed steel tools," says Anders Ilstam, President of CTT Tools. "After the acquisition, sales in our operations amount to slightly more than SEK 3 billion, with 4,500 employees at 15 production units worldwide."
Leif Sunnermalm, Executive Vice President, Sandvik AB, comments:
"The acquisition of Precision is another step in Sandvik's expansion strategy. We gain access to a very strong distribution organization in the U.S. and can offer customers a more complete product program. Moreover, favorable conditions are created for coordination and synergy gains with our other operations."
The acquisition is conditional upon the approval of the authorities.
Sandviken, 19 June 1997
Sandvik AB; (publ)