Sandvik acquires Chinese company Kunshan Ousike Precision Tools
November 26, 2018
Seco Tools, Fagersta, Sweden, a division of Sandvik Machining Solutions, has reached an agreement to acquire Chinese company Kunshan Ousike Precision Tools Co., Ltd (OSK), a supplier of solid carbide round tools based in Kunshan, Jiangsu. The acquisition is expected to strengthen Seco Tools’ position and product offering in the fast-growing Chinese electronics industry.
Klas Forsström, President of Sandvik Machining Solutions, stated, “The acquisition is aligned with Sandvik Machining Solutions’ focus on growing the round tools business. We are already today well positioned in China but OSK will bring us even closer to customers.”
“I am very happy that we have reached an agreement to acquire OSK and include them in the Seco family,” added Lars Bergström, President of Seco Tools. “OSK serves customers in the electronics and die and mould industries and this is an important step for Seco to improve its position in the fast growing Chinese market. Our combined expertise will strengthen the product offering to customers.”
In 2017, OSK reported revenues of SEK 120 million and employed a staff of ninety. Both parties have agreed not to disclose the purchase price, and the transaction is expected to close during the first half of 2019 subject to relevant regulatory approvals.