Sandvik to acquire Metso Powdermet AB
Sandvik has reached an agreement with the Finnish Metso Oy Group covering the acquisition of Metso Powdermet AB.
The acquisition is expected to be completed prior to the end of 2006.
Metso Powdermet AB is world leading in powder metallurgy components manufactured through so-called hot isostatic pressing (HIP-technology) into near net shape. The company develops and delivers customized components in high-alloyed steels as well as nickel and cobalt based alloys. Customers today are primarily in the offshore and energy sectors. Metso Powdermet posted sales of SEK 90 M during the past fiscal year, with an operating margin of 18%, and have 13 employees. The company has operations in Surahammar, Sweden.
Sandvik Materials Technology's previous operations in the field of powder technology include production of powder-based billets at its plant in Surahammar and high-alloy powder in Wales, UK.
Through acquisition of Metso Powdermet AB, Sandvik Materials Technology will strengthen its position in the strategically important oil and gas, energy and medical-technology segments.
"Today, Sandvik Materials Technology has leading-edge expertise in materials technology and powder production. The acquisition provides access to the complementary expertise required to capture a significant position with regard to applications development and component production of powder-based products pressed to near net shape," says Peter Gossas, President of Sandvik Materials Technology.
Sandviken, 23 November 2006
Sandvik AB; (publ)