Sandvik acquires minority share in American tool maker
Sandvik Tooling has reached an agreement to acquire 49% of the shares in the company Precorp Inc., based in Spanish Fork, Utah, USA.
Precorp is a developer, producer and supplier of polycrystalline diamond (PCD) and cemented-carbide tools for machining of advanced composite materials as well as many other materials used mainly by the aerospace and automotive industries. In 2007, Precorp had sales of approximately SEK 140 M, with 140 employees.
"The acquisition is in line with Sandvik's long-term strategy to deliver increased customer value and generate profitable growth. Through the acquisition, we intend to further develop and strengthen the global business for diamond based cutting tools, particularly in the rapidly growing aerospace segment," says Anders Thelin, President of Sandvik Tooling.
"On behalf of all the employees at Precorp, let me say that we are excited about partnering with Sandvik as we continue to invest in Precorp's long-term strategy for growth in the aerospace markets, and I look forward to continuing to lead the business into the future", says John Bunting, Chairman and CEO of Precorp.
The acquisition is expected to be concluded by the end of June 2008.
Sandviken, 16 June 2008
Sandvik AB; (publ)