Sandvik acquires US round tools manufacturer GWS Tool Group

Companies & MarketsNews
November 23, 2021

November 23, 2021

GWS sells a wide range of cutting tools for numerous applications (Courtesy GWS)

Sandvik AB, Stockholm, Sweden, has signed an agreement to acquire 100% of the equity interests of made-to-order round tools provider GWS Tool Intermediate Holdings LLC, Tavares, Florida, USA, from its owners L Squared Capital Partners and GWS management for an undisclosed price. GWS will be reported within Walter, a division of Sandvik Manufacturing and Machining Solutions.

“With the acquisition of GWS, we take an important step in our shift to growth strategy where we have a clear ambition for our machining solutions business to increase market share in round tools, and to enhance our presence in the North American market,” stated Stefan Widing, CEO and president of Sandvik.

GWS primarily sells made-to-order products, such as polycrystalline diamond tools and taps. The company’s operational presence in the US and speed-to-market capabilities are intended to improve Walter’s value proposition and position in the manufacturing of advanced components and lightweight materials, while strengthening and complementing Walter’s current customer end-market exposure.

GWS has around 490 employees. For 2021, on a pro forma basis, the company is expected to have revenues of approximately SEK 875 million. GWS has reportedly have strong revenue growth historically, and is expected to grow at a high single digit organic growth rate in the medium term. The impact on Sandvik’s EBITA margin and earnings per share is expected to be neutral initially.

Nadine Crauwels, president of Sandvik Machining Solutions, added, “We are pleased to add the GWS product portfolio to our existing US offering and become a one-stop shop for round tools for our North American customers. GWS brings us complementary production capabilities and strengthens our foothold within general engineering and aerospace, while having only a limited, low-single digit exposure to internal combustion engines. With its solid position within custom round tools and strong customer focus, GWS is a great fit for Sandvik Machining Solutions.”

The transaction is expected to close during the fourth quarter of 2021 and is subject to relevant regulatory approvals.

www.home.sandvik/en

www.gwstoolgroup.com

Companies & MarketsNews
November 23, 2021

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