Sandvik Materials Technology is divesting its power spring business in Scranton, US and Nogales, Mexico to Lesjöfors AB, a subsidiary of Beijer Alma.
The divested operation is a leading manufacturer of power spring solutions for a wide range of customer applications in consumer, industrial, construction and medical environments.
Invoiced sales for the business concerned amounted to about 15 million USD in 2013 and the total number of employees encompassed is approximately 60, of which 40 in the US and 20 subcontracted employees in Mexico. Currently, they form part of the Strip, Wire and Heating Technology product area at Sandvik Materials Technology.
The divested operation involves a limited linkage to the rest of the business area and the raw material is sourced externally.
Lesjöfors AB is a Sweden-based international manufacturer of industrial springs, wire and flat strip components. Lesjöfors is a subsidiary of Beijer Alma AB and operates from 21 manufacturing units in ten countries following the acquisition.
"This divestment is in line with Sandvik Materials Technology's strategy to focus more towards the energy segment and applications related to energy efficiency, and exit businesses considered non-core. We are continuously developing our product portfolio towards even more advanced products and materials for the most demanding industries.", says Petra Einarsson, President of Sandvik Materials Technology.
The transaction is expected to be finalized by 31 December 2014.
Stockholm, 28 October 2014
For further information contact: Ann-Sofie Nordh, Investor Relations, Sandvik AB, tel +46 8 456 14 94 or Jessica Alm, Executive Vice President Group Communications, Sandvik AB, tel +46 8 456 12 88.