Sandvik's acquisition of world-leading U.S. company is finalized

Effective 1 September, the company is a wholly-owned subsidiary of CTT Tools, within the Sandvik Tooling business area.

Precision Twist Drill, with the well-established Precision, Triumph and PSC Carbide brand names, has annual sales of nearly SEK 1 billion and 1,600 employees at two production units in the U.S. High-volume products such as twist drills are produced in a highly automated plant in Rhinelander, northern Wisconsin. This plant is the largest in its class in the world based on production capacity. The head office and central warehouse for the entire U.S. is located at Crystal Lake, near Chicago, Illinois. High-tech products in high-speed steel, solid cemented-carbide tools and special products for the aerospace and automotive industries are also produced at Crystal Lake. Precision Twist Drill's operations are focused mainly on the American market.

Anders Ilstam, president of CTT Tools and now also for Precision Twist Drill, comments: "It is very pleasing that we succeeded in completing this acquisition which means that we gain a strong position in the American high-speed steel market. The acquisition is also a significant step in Sandvik's expansion strategy within the important NAFTA region. Precision Twist Drill has an efficient distributor network in the U.S. and Sandvik can now offer customers a more complete product range also from CTT units, mainly in Europe."

Precision Twist Drill's profitability level is initially lower than the average for the CTT companies. However, the potential to improve profitability is favorable. This can be accomplished through capitalizing on synergy effects with other Sandvik companies in, for example, logistics, product development and production technology, and through the extensive rationalization program which is now being initiated in the company.

Sandviken, 2 September 1997

Sandvik AB; (publ)

The Sandvik company CTT Tools is the world's largest manufacturer of high-speed steel tools and is now also expanding in the increasingly growing market for tools in solid cemented-carbide. After the acquisition of Precision Twist Drill, CTT has annual sales of about SEK 3.5 billion, with 4,500 employees at 15 production units worldwide. In the U.S., which is the Sandvik Group's largest single market, CTT is already represented by the subsidiary Union Butterfield, acquired in 1990, and the Dormer Tools sales company, which was founded in the 1940s.